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Mercedes-Benz Sees Surge In Indian Buyers Opting For Electric Vehicles As First Luxury Car

Mercedes-Benz is experiencing a significant rise in Indian buyers choosing electric vehicles as their first luxury car, according to the company’s India managing director, Santosh Iyer.

This trend is contributing to the German carmaker’s record sales in the country.

“In the first six months of 2024, we sold 9,300 cars in India, of which 5% were electric models, doubling our EV penetration from 2.5% last year,” Iyer told Reuters.

Notably, 15% of all EVs sold by Mercedes in India this year were to first-time luxury car buyers, up from 5% in 2023.

The growth in India’s EV market, although still small, is gaining momentum. Electric models accounted for about 2% of the total 4.2 million cars sold in India last year, with the government aiming to increase this to 30% by 2030.

Mercedes, which recently announced a $24 million investment in India, offers 18 combustion engine car models and six EVs in the country.

The company began assembling EVs in India in 2022, reducing duties as high as 100% on fully-built imported units. The EQS SUV is its second locally-assembled EV.

“We are taking the (EV) transition seriously, and pushing it hard by not only importing products but also localising more and more,” Iyer emphasised.

However, high prices and uncertainty over resale value remain deterrents for many buyers. Despite this, Mercedes-Benz is committed to driving the EV transition in India.

 Boluwatife Enome

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