Mercedes-Benz India getting track ready for smooth electric drive
India will not chase volumes in electric vehicles, but will focus on creating an ecosystem for EVs such as lowering the cost of ownership, building charging infrastructure and offering a hassle-free experience that will likely help boost sales eventually, the company's top executive said.
This is even as the company remains steadfast on meeting the mid-term target of EVs contributing 25% to its total sales by 2027, Mercedes-Benz India chief executive Santosh Iyer told ET. «For us, volume is not a strategy and it's the outcome of what we do. As a luxury brand, we are measured by customer experience and profitable growth. To achieve this, we need to be cautious about how we go about EVs. It must be a long-term strategy. That's our core strategy,» Iyer said.
Reaffirming the trend that Mercedes buyers are up-trading to feature-rich, technology-packed models, sales of models priced above ₹1.5 crore (ex-showroom) grew 22% in the first nine months of 2023, accounting for a quarter of its total sales that expanded 11% to 12,768 cars.
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In pre-pandemic 2019, sales of such high-end cars had a 15% share in total sales, according to Iyer. The company's top-end models include the GLS, S-Class, S-Class Maybach, GLS Maybach, AMGs and EQS. With a higher share of these in the total sales, the average selling price of models in India has jumped 70% from the pre-pandemic period. This is the highest among its peers, Iyer claimed.
Currently, EVs account for 5% of Mercedes' total sales in India.
As part of the «eco-system approach» Mercedes has announced a slew of initiatives, the latest being the absorption of 50% of the road tax on its
