Mercedes will not play on price but value in electric vehicles: India chief Santosh Iyer
Mercedes-Benz 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 managing director and 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.
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Reaffirming the trend that Mercedes buyers are up-trading to feature-rich, technology-packed models, sales of models priced above Rs1.5 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.
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.
In India’s luxury-car segment, BMW has the largest number of EV models on offer, with a 50% share. EVs accounted
