German legacy automaker Mercedes-Benz recently announced, through its AG Head of Region Overseas, that it plans to market four new electric vehicle offerings in the following “8 to 12 months” in India.
Notably, the move is part of the automaker’s strategy to raise its EV sales in India to 25%.
“We will have 25 percent (of total sales), that’s our planning assumption, of electric vehicles in the next four years.”
Matthias Luehrs, Mercedes-Benz AG Head of Region Overseas (via CNBC TV18)
Mercedes-Benz’s current EV portfolio for the Indian market
In India, the German luxury automaker currently offers four luxury EV models, including the EQS, EQB, EQC, and EQS AMG.
“We are very happy with the development of our EVs (electric vehicles) here in the Indian market with (models such as) the EQS and the EQB. We’ll have four more vehicles coming in.”
Matthias Luehrs, Mercedes-Benz AG Head of Region Overseas (via CNBC TV18)
In retrospect, Mercedes-Benz India recorded overall sales growth of 41% to 15,822 units in 2022. That figure represents a significant increase from just 11,242 unit sales in 2021.
Going back to the planned four new EVs, Mercedes-Benz India Managing Director & CEO Santosh Iyer disclosed that it would arrive on the Indian market in the next 8-12 months. The mix will encompass fully constructed units alongside imported fully disassembled units that will be assembled at the company’s Chakan plant.
India can potentially advance as the 4th largest market
Matthias Luehrs noted that the country is currently the fifth-largest auto market in the overseas region.
For those unaware, the overseas region for Mercedes-Benz includes 120 markets in addition to Germany, the US, the UK, and China. According to the automaker’s rankings in foreign markets, India is behind South Korea, Japan, Australia, and Turkey.
However, Mercedes-Benz AG’s Head of Region Overseas is optimistic that India may advance to the fourth spot by 2025.
“The factors which make us very optimistic is that we have seen a big change in the structure of customers in India.”
Matthias Luehrs, Mercedes-Benz AG Head of Region Overseas (via CNBC TV18)
Factors affecting the luxury car market in India
Matthias Luehrs stated that the increasing cost of taxation impedes India from developing its luxury car market.
“In general, any tax that is going higher prevents from selling more cars or goods, but that’s the normal equation.
But obviously, if you have one market with less taxes, then you will sell more cars. That’s very obvious. That’s the case in the US. That’s the case in Europe, that’s the case in China. Therefore, obviously, if you have more taxes then the niche becomes smaller.”
Matthias Luehrs, Mercedes-Benz AG Head of Region Overseas (via CNBC TV18)
He further responded to a question regarding regulatory challenges, stating that regulation changes are just normal in the industry. However, it will depend on the company’s ability to adapt.
“I can only say we (have) operated (globally) since 100 years and in all sorts of markets, and regulations go, and change up and down and sideways everywhere. Also, in Germany, also in India, in China, also in the US, and we adapt to it. That’s why we are a leading luxury company in the automotive market. So we just adapt to the regulations and some regulations are more beneficial than the others.
When a new regulation comes up in the first instance it is a new obstacle, a new challenge, he said, adding that “and we manage the challenge. We have ideas how to manage that. For one or two months, obviously slowing down the process if you want to, but then afterwards, we manage, we have new suppliers, and we will manage them.”
Matthias Luehrs, Mercedes-Benz AG Head of Region Overseas (via CNBC TV18)
See Also:
- 2023 Mercedes-Benz EQE SUV revealed as brand’s fourth bespoke electric vehicle
- Mercedes-Benz EQE US pricing starts below $75,000
- Mercedes-Benz expands its subscription technology with the latest payment system
- Luminar announces expanded partnership with Mercedes-Benz for self-driving tech
- Mercedes announces plans to construct a €1.3bn e-van factory in Poland
The executive also stated that having more predictability is an advantage in adapting to regulation changes.
“While doing business with more lead time you can adapt easier to any new regulations,.”
Matthias Luehrs, Mercedes-Benz AG Head of Region Overseas (via CNBC TV18)
