Mercedes-Benz India Sets Ambitious Goal: 25% of Car Sales to be EVs in 3 Years
- ByStartupStory | August 17, 2023
Luxury car manufacturer Mercedes-Benz is making a substantial bet on India’s burgeoning electric vehicle (EV) market, anticipating that its EV portfolio, both present and future offerings, will constitute 25% of its total car sales within the next three years. This ambitious target signifies a notable increase from the current levels of three to four percent.
Mercedes-Benz recently unveiled the GLC, its latest petrol/diesel SUV model, in Hyderabad.
Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, disclosed the automaker’s plans to introduce three to four EVs to the Indian market within the coming 12 to 18 months. He elaborated, “For India as well, we feel that there would be a rapid adoption as and when new cars launch, and at this stage, we are looking at three to four new EVs in the next 12 to 18 months’ time. So, slowly but surely, we should increase penetration. And in the next three years, we feel that 25 percent of our sales would be EVs in India as well.”
Iyer highlighted the potential ease of EV adoption for Mercedes-Benz car owners, given that many of them already have charging facilities accessible at their homes or workplaces, reducing reliance on public charging infrastructure. He expressed hope that certain states, currently imposing road tax on EVs, might consider granting exemptions for this segment.
The CEO further emphasized that the company’s Pune plant, sprawling across 100 acres, boasts an annual production capacity of 20,000 units, with the possibility of doubling to 40,000 units.
“Our current investments are close to Rs 2,700 crore in the plant. With GLC (recently launched car model), we have invested an additional Rs 100 crore. This capacity to make 20,000 cars in India (can) go up to 40,000… The first phase of 20,000, we should be seeing very soon. In the next two to three years, we should be reaching those numbers,” he elaborated.
Discussing sales figures, Iyer noted that the luxury automaker achieved sales of over 8,500 cars during the first half of the current year and anticipates achieving double-digit growth for the full year.
Regarding the newly launched petrol/diesel SUV, Iyer revealed that it has already garnered more than 1,500 bookings nationwide, resulting in an approximately four-month waiting period for new bookings.
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