Mercedes Benz Targets BEV Portfolio Expansion In India By 2024

Published: Monday, July 8, 2024, 14:30 [IST]

Mercedes Benz India has introduced the EQA 250+, its fourth battery electric vehicle (BEV) in the Indian market, priced at Rs 66 lakh. This model features a 70.5 kWh battery and offers a WLTP range of up to 560 km. The company aims to expand its BEV portfolio from three to six models by the end of 2024.

According to Santosh Iyer, MD and CEO of Mercedes Benz India, "Three of the six new launches in the rest of 2024 will be BEVs. This will double our portfolio from 3 to 6 cars by the end of the year.|

We remain strategically focused and tactically flexible and are taking all necessary steps to go all electric. Having said that, customer preference and market conditions will set the pace for this transformation."

Mercedes Benz Focus on Customer Experience

Iyer highlighted that concerns about the residual value of EVs are being addressed by offering a 67% assured buyback value at the end of four years, similar to their internal combustion engine (ICE) cars.

He also mentioned that new and updated products, enhanced customer experience at retail points, and ease of ownership have contributed to their best-ever H1 sales performance.

"With some of the most awaited products lined up for the upcoming festive season, we expect the remaining quarters to continue the forecasted growth.

With the EQA and EQB, we are targeting young customers desiring sporty, dynamic, highly intuitive BEVs, which are practical, offering ownership experience better than ICE counterparts," he added.

Mercedes Benz Expanding Infrastructure

The company has been building a robust infrastructure for its electric vehicles. Since launching their first luxury EV in 2020 with the EQC and locally manufacturing the EQS in Pune in 2022, they have established over 35 ultra-fast DC chargers and more than 100 AC chargers. By the end of 2024, they aim to have over 1,000 charging points across India.

"We pioneered in the luxury EV segment way back in 2020 with the launch of the EQC. In 2022, we were the first to locally manufacture the EQS in our plant in Pune.

There's a very strong infrastructure that we're building up comprising of 35 plus ultra-fast DC chargers, 100+ AC chargers and complementary wall box chargers. By the end of 2024, we aim to have more than 1000 charging points," Iyer stated.

Mercedes Benz Sales Growth and Future Plans

Mercedes Benz India achieved its highest-ever Q2 sales and recorded its best-ever H1 sales performance in 2024. In H1 alone, they delivered 9,262 new cars, marking a 9% growth compared to last year. Their SUV penetration has grown to 55%, with waiting periods ranging from two months to one year for some models.

"This reiterates our commitment to the market. Our SUV penetration has grown to 55%. Waiting periods range from two months to one year for some of these SUVs.

Our product launches will continue in H2 with some of the most exciting new launches coming in the next few months. From high-end AMGs and long-awaited new E-class to exclusive Maybachs, we have a lot of exciting cars coming for India debut," Iyer noted.

Mercedes Benz Expanding Network

The company is also focusing on expanding its touchpoints across India. In H1 alone, they added ten new luxury touchpoints in cities like Chennai, Bengaluru, Gurgaon, and Mumbai. They plan to add an additional fifteen touchpoints by year's end.

"Having a wide network is also crucial in enhancing customer experience. In the first half of this year we've added ten new luxury touchpoints across Chennai, Bengaluru, Gurgaon and Mumbai. We will expand to additional fifteen touchpoints by the end of this year," Iyer mentioned.

The EQA is Mercedes-Benz's most successful BEV globally while EQB debuts as a five-seater suitable for both city and highway travel. "Our BEV roadmap for India is ambitious comprising most versatile BEV portfolio starting from EQA up to upcoming EQS Maybach SUV by end of year," Iyer added.

In the first half of 2024, there was a significant 60% increase in the sales of Battery Electric Vehicles (BEVs) in India. This surge accounted for 5% of the total sales volume, highlighting a robust interest in high-end electric cars among Indian buyers.