Pune: Mercedes-Benz is expanding its electric vehicle (EV) offerings in India, responding to rising demand for emission-free mobility. The luxury carmaker has announced plans to locally assemble the EQS SUV 580, marking it as the second EV to be produced within the country. The move is aimed at making the electric SUV more price-competitive in the market.
India will be the only market outside the U.S. where the EQS SUV 580 is assembled locally, a strategic step to avoid the high customs duties on fully imported vehicles. Locally assembled vehicles from knocked-down kits (CKD) attract a 15% duty, compared to the 110% levied on fully imported units. The EQS SUV 580 will be priced at ₹1.41 crore.
The decision aligns with the company’s goal to meet growing consumer interest in electric SUVs, which now account for 55% of all cars sold in India. Mercedes-Benz India Managing Director Santosh Iyer noted that EV involvement in the company’s overall sales has doubled to 5% in the first half of 2024, compared to last year.
This local assembly initiative is expected to further strengthen Mercedes-Benz’s position in India’s evolving electric vehicle market.
Discussion about this post