Mercedes Benz India to double EV portfolio by 2024

The company expects 25 percent of its total sales to come from EVs by 2027.

Published On Mar 23, 2023 07:27:00 PM

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Mercedes Benz India to double EV portfolio by 2024

Mercedes-Benz EQS SUV

Mercedes-Benz India, the country’s largest luxury carmaker, aims to increase its EV portfolio to eight models within a year, as the demand for zero emission vehicles in India gains momentum.

Mercedes Benz India sales grew 41 percent in 2022
The carmaker looks to cross 18,000 unit sales this year

With its EV sales almost crossing 1,000 units annually, the maker of the EQS sedan is planning to double its portfolio by adding four more models in the next 8-12 months.

The company currently imports the EQB, EQC and EQS 53 AMG, while the EQS 580 is made in India. All models have a waiting period of 3-6 months.

Mercedes Benz upcoming models

In 2023, the company plans to launch 10 new models, and electric vehicles will be amongst the key pillars of its product offensive.

In the internal combustion engine space, the new generation GLC and the GT63 AMG e-Performance – with a plug-in hybrid – will be launched.

Matthias Luehrs, head of Region Overseas, Mercedes-Benz AG said, “We are very happy with the development of EVs in the Indian market. We expect 25 percent of our total sales to come from EVs in the next four years. We are moving towards an all-electric future by 2030-2032, and expect the transition in India to also gather pace. However, if there are some markets which may still need an ICE car, we will remain flexible. But at this point in time, the focus is all electric by 2030-32.”

India's share in Mercedes Benz sales

India was the fastest growing market for Mercedes-Benz in 2022, with a growth of 41 percent, and Luehrs says the company expects double-digit growth to continue in 2023.

The country is already the fifth largest market in the region overseas for Mercedes Benz – which accounts for 20 percent of overall sales for the German luxury carmaker. It is also the largest market with a completely knocked down plant anywhere in the world.

Luehrs who was in India for a business review meeting after two years told select media persons that India is one of the most important countries in the region overseas, and in terms of growth rate it will figure amongst the top three markets in terms of growth this year too.

Indian markets recovery post COVID

“Indian market has already crossed the pre-COVID levels, and we are looking at another year of healthy growth. Some of the other markets around the world are still growing at 3-5 percent and yet to breach pre-COVID levels. This market has seen structural changes, the average age is getting younger and there is a higher share of women buyers, we are very well placed to capitalise on the future growth of this market,” he added.

When queried if the company is looking at further investment or adding more capacity, Luehrs says the current production capacity is adequate in Chakan to cater to the future requirement and there is no plan to go in for local production.

Mercedes-Benz India sold 15,822 cars in 2022, and according to people in the know, it is likely to cross 18,000 units in 2023 making it yet another record year for the company. The manufacturer has pending bookings amounting to 4,500 units.

On supply chain challenges, he added, “Chip crisis is not over yet, we are not out of the woods yet, but it is a lot more plannable.” Luehrs, however, declined to give specific number guidance.

Amongst the German luxury car brands, Mercedes has a market share of 52 percent, and in the overall luxury car market, which includes Volvo, JLR amongst others, Mercedes Benz had a market share of 46 percent in 2022.

Also see:

Mercedes-Benz EQS review: Breaking the mould
Mercedes-Benz EQS 580 4Matic India review: Luxury EVs don't get better than this