German luxury carmaker Mercedes-Benz has announced that it will begin manufacturing its electric SUV, the EQS SUV 580, in India. This makes India the only market outside the US to produce the seven-seater electric vehicle, highlighting the company’s confidence in the growing local demand for electric vehicles (EVs).
While the EQS SUV 580 is new to the Indian market, this isn’t Mercedes-Benz’s first foray into EV production in the country. The company has been producing the EQS sedan in India for the last 18 months, selling 500 units to date.
The EQS SUV 580, equipped with a 122 kWh battery and an impressive range of 809 km on a single charge, is expected to be priced at Rs 1.4 crore. The model is not yet available in India but will soon enter the market as part of Mercedes-Benz’s broader strategy to boost EV sales.
CEO’s Vision for Expanding the EV Range
Santosh Iyer, MD and CEO of Mercedes-Benz India, stated that offering both a sedan and an SUV within the EQS range will provide customers with more comprehensive options. He also highlighted that the EQS SUV is the third luxury EV launched by the company this year. “The localisation of the EQS SUV showcases our capabilities, adds value for Indian consumers, and aligns with the government’s ‘Make in India’ vision,” said Iyer.
Mercedes-Benz is making a significant commitment to its Indian operations, with plans for an additional Rs 200 crore investment in 2024. This investment will focus on enhancing manufacturing operations, new product launches, and the digitisation of production processes. With this, the company’s total investment in Indian manufacturing capacity now stands at Rs 3,000 crore.
Mercedes-Benz has launched three EV models in India in 2024 the EQA, EQS SUV 580, and the ultra-luxury Mercedes-Maybach EQS 680 SUV. The company’s EV sales have surged by 60% in the first half of 2024, with the penetration of EVs doubling from 2.5% at the end of 2023 to 5% by mid-2024.
Mercedes-Benz India achieved its best-ever half-year sales in H1 2024, delivering 9,262 cars, a 9% year-on-year increase. SUVs accounted for 55% of these sales, while top-end vehicles priced above Rs 1 crore contributed 25%. The Maybach portfolio, in particular, saw rapid growth, with sales increasing by 108% in the first half of the year.
Competition in the Luxury EV Market
Mercedes-Benz is not the only luxury carmaker ramping up local production. In May, Jaguar Land Rover (JLR), owned by Tata Motors, began producing the Range Rover and Range Rover Sport in India, reducing prices by 18-22%. JLR plans to launch six new EVs in India by 2030, starting with the Range Rover BEV next year.
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