Mercedes-Benz India will begin manufacturing its electric SUV, the EQS SUV 580, in India, making it the only market outside the United States to produce this seven-seater vehicle. The company’s decision to expand production in India comes in response to growing demand for electric vehicles (EVs) in the country.
This new development follows Mercedes-Benz's ongoing production of the EQS sedan, which has been locally manufactured for the past 18 months. So far, the company has sold 500 units of the EQS sedan in India, marking its initial success in the local EV market.
EQS SUV 580 Specifications and Pricing
Currently unavailable in India, the EQS SUV 580 will feature a 122 kWh battery and a range of 809 km on a single charge. The vehicle is anticipated to be estimated at ₹1.4 crore, advance extending Mercedes-Benz's premium EV portfolio in the nation.
Santosh Iyer, MD and CEO of Mercedes-Benz India, stated that introducing both the sedan and SUV variants of the EQS range will help enhance sales and provide a more comprehensive range of options for customers. The EQS SUV marks the third luxury EV launched by the company in 2024.
Iyer further emphasized, “Mercedes-Benz is committed to the Indian market with an additional ₹200 crore investment in 2024, aimed at enhancing manufacturing operations, launching new products, and digitizing processes. The local production of the EQS SUV highlights our capability and adjusts with the government’s 'Make in India' initiative.”
Investment in India
Mercedes-Benz's cumulative investment in its Indian manufacturing capacity now totals ₹3,000 crore, solidifying its long-term commitment to the region’s growing EV market.
The German automaker now offers six electric vehicles (EVs) in India, including the EQA SUV, EQB SUV, EQE SUV, EQS SUV, EQS 580 sedan, and the ultra-luxury Mercedes-Maybach EQS 680 SUV. Between January and September 2024, the company introduced three EVs in India, contributing to a 60% growth in EV sales in the first half of 2024.
Mercedes-Benz has also seen its overall EV penetration double, increasing from 2.5% of total sales at the end of 2023 to 5% in the first half of 2024.
As of June 2024, Mercedes-Benz posted its best-ever half-year sales in India, delivering 9,262 cars, reflecting a 9% year-on-year growth. The company holds an order book of 2,000 cars and anticipates double-digit growth by the end of the year.
SUVs account for 55% of sales, while 25% come from top-end vehicles priced above ₹1 crore. The Maybach portfolio saw the fastest growth, registering a 108% rise in sales in the first half of 2024.
Luxury carmakers are increasingly focusing on manufacturing in India. In May 2024, Jaguar Land Rover (JLR) India, owned by Tata Motors, began producing completely knocked down (CKD) units of the Range Rover and Range Rover Sport in India, reducing their prices by 18-22%. JLR plans to launch six new EVs in India by 2030, starting with the Range Rover BEV in 2025.
With inputs from agencies
Image Source: Multiple agencies
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