German luxury car maker Mercedes-Benz is planning to assemble more electric vehicles at its Indian plant, not only to reduce costs but also to achieve its zero-emission mobility and carbon-neutral objectives.
Currently, Mercedes-Benz India assembles its flagship electric luxury sedan EQS at its Chakan facility and is contemplating the localisation of additional models based on market demand according to a senior company official.
“Our ultimate goal is zero-emission mobility and a carbon-neutral setup, which encompasses not only tailpipe emissions but also the recyclability of the car and the carbon footprint generated during production,” said Mercedes-Benz India CEO & MD Santosh Iyer told PTI.
“We need to take a holistic approach, and thus producing EVs was the logical step. We will continue in that direction as market demand evolves,” he added in response to a query about Mercedes-Benz India’s long-term plans for local EV assembly.
Mercedes-Benz India began assembling the EQS at the Chakan plant in October 2022. Out of the four EV models it sells in India—SUVs EQA, EQB, and EQE, and the EQS sedan—the EQS is the only model currently assembled locally. These models are priced between Rs 66 lakh and Rs 1.6 crore.
Acknowledging the benefits of local assembly, Santosh Iyer said, “For instance, the EQS is available at around Rs 1.5 crore, which would have been more expensive otherwise. This really helps us.”
Globally, Mercedes-Benz aims to make its entire fleet of new vehicles net carbon-neutral across the entire value chain and throughout the vehicles’ life cycle by 2039.
Additionally, it plans for its production plants worldwide to operate 100% on renewable energy with zero CO2 emissions by the same year. The company also aims to reduce CO2 emissions per passenger car in the new vehicle fleet by up to 50% across all stages of the value chain by the end of this decade compared to 2020 levels under its Ambition 2039 initiative.
Iyer said the carmaker will consider about assembling more EVs in India depending on market demand. Localising production requires certain threshold volumes, he added.
Mercedes-Benz reported a 9% growth in sales in India, with 9,262 units sold in the first half of 2024, marking its highest-ever half-yearly sales in the country. EVs accounted for over 5% of total sales volumes, with EV sales growing by 60% in H1 2024 compared to the same period last year.