Mercedes-Benz, the German luxury carmaker, is considering assembling more electric vehicles (EVs) at its plant in India. This is not just to save costs but also to meet its goals of zero emissions and carbon neutrality. Currently, Mercedes-Benz India assembles the EQS electric sedan at its Chakan plant and is looking at localizing other models based on demand.
“Our goal is zero emission mobility and a carbon-neutral setup. This includes tailpipe emissions, car recyclability, and the carbon footprint of producing these cars,” said Santosh Iyer, Managing Director & CEO of Mercedes-Benz India. Iyer added, “Producing EVs is a logical step, and we will continue as market demand changes.”
Mercedes-Benz India started assembling the EQS in October 2022 at the Chakan plant. It is the only locally assembled model among the four EV models—EQA, EQB, EQE SUVs, and the EQS sedan—that it currently sells in India. These models are priced between Rs 66 lakh and Rs 1.6 crore.
“Local assembly helps us reduce costs. The EQS, priced at around Rs 1.5 crore, would have been more expensive without local assembly,” Iyer said. “It also helps us gain knowledge on EVs and build up as we transition globally and in India.”
Globally, Mercedes-Benz aims to make its entire fleet net carbon-neutral by 2039 and its production plants run 100% on renewable energy with zero CO2 emissions by the same year. The company also aims to reduce CO2 emissions per passenger car by 50% by 2030 compared to 2020 levels.
When asked about assembling more EVs in India, Iyer said, “We are considering it based on market demand and necessary investment.” Mercedes-Benz had a 9% growth in sales in India in the first half of 2024, with EVs making up over 5% of total sales. EV sales grew by 60% in H1 2024 compared to the same period last year.
