Mercedes-Benz India to launch 3 new EVs in 2024

Luxury carmaker Mercedes-Benz plans to launch a dozen new models in India, the majority of which will be top-end cars priced over ₹1 crore.

The German automaker will also launch three new battery electric vehicles to rev up its EV portfolio. EVs accounted for 4% of its overall volumes in 2023.

The premium carmaker's EV sales trebled in 2023. In the next four years, Mercedes-Benz India is eyeing 25% of its sales from EVs. Its BEV portfolio comprises the EQB SUV, EQE SUV, and EQS sedan.

Mercedes-Benz India's sales grew 10% year-on-year to record 17,408 units in 2023 as against 15,822 units in 2022. The company commands about 48% market share in India's premium car market.

The demand for the top-end vehicle (TEV) segment continued to remain strong, contributing around 25% of Mercedes-Benz's sales volume in the previous calendar year.

“It is our strategy to grow the TEV segment as it represents about 25% of our sales,” says Lance Bennett, vice-president, Sales & Marketing, at Mercedes-Benz India.

The company will invest ₹200 crore in the country this year, taking the carmaker's cumulative investment to ₹3,000 crore since 1994 when it began operations in India.

The auto major is looking to expand its service network across the country. It plans to inaugurate 20 workshops and enter 10 new cities in 2024. Jammu, Kannur, Kottayam, Udaipur, Amritsar, Agra, Valsad, and Patna are some of the cities that will have a Mercedes-Benz workshop in 2024. The carmaker aims to have a service facility for every customer, with a drive time of less than two hours.

Mercedes-Benz also launched the new GLS to strengthen its top-end SUV portfolio. The GLS 450 d features a 6-cylinder diesel engine, producing 270 kW power and 750 nm torque while GLS 450 features a 6-cylinder petrol engine producing 280 kW power and 500 nm torque.

Both engines are paired with 48V mild hybrid technology which gives additional power of 15 kilowatt and an impressive add-on torque of 200 nm.

A majority of Mercedes-Benz's sales in India come from petrol-powered sedans and diesel SUVs. "Diesel cars are more expensive than petrol but consumers still prefer diesel because fuel efficiency, torque and residual value are better in diesel," Mercedes-Benz India managing director and CEO Santosh Iyer told Fortune India last year.

Till the time the country transitions to EVs completely, Iyer believes a mix of petrol and diesel cars is needed for the right balance. "Petrol vehicles cause CO2 emissions while diesel releases PM 2.5 particles. With a mix, one can balance these two critical pollutants. If you are skewed towards petrol, then you will be a bigger CO2 polluter," Iyer said.

Currently, Goods and Services Tax (GST) of 5% on EVs is a big lever for EVs to be priced so competitively, according to Iyer. "If it continues, we will see a rapid transition to EVs," he said.