Islamabad, Sep 17: Mercedes-Benz is experiencing a notable increase in Indian buyers choosing electric vehicles (EVs) as their first luxury car, according to the company’s managing director, Santosh Iyer. This trend is contributing to the German automaker’s growing sales in India.
Luxury car sales in India are booming, helping Mercedes achieve record figures. In the first half of 2024, Mercedes sold 9,300 cars in India, with 5% being electric models—up from 2.5% last year.
Iyer noted that many young Mercedes buyers are opting for EVs for a sense of “differentiation.” This trend is particularly evident among opinion leaders such as doctors, lawyers, and architects, who want to demonstrate their early adoption of new technology.
The recent launch of the EQS 580 SUV, a 7-seater electric model priced around $168,200, reflects this shift.
This year, about 15% of all EVs sold by Mercedes in India were purchased by first-time luxury car buyers, a significant increase from 5% in 2023. The growth is supported by new electric SUV introductions.
Despite its current small size, India’s EV market is expanding, with electric models accounting for about 2% of the 4.2 million cars sold last year. The Indian government aims to increase this figure to 30% by 2030.
Mercedes, which announced a $24 million investment in India in January, currently offers 18 combustion engine models and six EVs. In 2022, the company began assembling EVs locally to avoid high import duties. The EQS SUV is the second EV assembled in India.
Iyer emphasized the company’s commitment to the EV transition, focusing on increasing local production rather than relying solely on imports. However, the high cost of EVs and uncertainty about their resale value continue to be barriers for many potential buyers.
