Mercedes Benz India eyes EV penetration of 5-7%, set to cross 1000 units sales mark in 2024

Mercedes Benz, the country's largest luxury car maker will more than double its EV sales in 2023 and is on course to cross 1000 units EV sales mark in 2024, accounting for almost 5-7% of its total sales in the within a year.

The penetration in the luxury market is almost three times more than the mainstream market, led by higher disposable income at the top end, higher range and smaller price differential between the EV version and the internal combustion engine equivalent.

Launching the new EQE in Pune which too had a price differential of just 10%, Santosh Iyer, MD of Mercedes Benz India told Autocar at the launch of EQE, that there were multiple questions in the mind of the company about the future of electrification, but it is no more a question - rather than the fast-emerging reality all of us are embracing.

The head of the Mercedes brand believes that the society has accepted EV is the future and people want to move, but there are still apprehensions on the shift.

“The answer which I like and hate - is that my next car will be an electric.  I like it because I see a future where electric cars will come, but I wonder why they are not buying it today, when the options are available, which is what we are trying to address with EQE, where the pricing for EV with an ICE equivalent is more or less same in many states," explained Iyer.

There are issues of range anxiety which Mercedes Benz is addressing by boosting charging infrastructure, it is offering assured residual value and 10 years warranty - which is the highest in the industry to make it a hassle free experience for the consumers.

Iyer says the adoption rate at the top end is definitely going to be much faster, yet Mercedes Benz is not running after volumes.

“We have to be patient here and not configure our product and strategy based on volumes, because that would be a cardinal mistake as our customers are a trendsetter, they will show it to their family and peers, hence our cars have to be equipped with the best features and maximum range," Iyer explained.

In the first half of this calendar year Mercedes Benz sold about 450 electric vehicles, the numbers could have been higher if not for the challenges on supply of EQB, with a portfolio of four cars are different price points, Mercedes Benz will be addressing a much wider customer base.

Mercedes Benz has guided for all electric future post 2030 globally. The penetration rate in India is likely to be slower, yet it expects the penetration to grow almost five times to 25% in the next three to four years.

To understand the EVs better and also to raise awareness of EVs further, Mercedes Benz has converted all its top executives’ cars to all-electric. Starting September, top 30 CXOs will replace their ICE cars with a zero emission vehicle.

To further help accelerating adoption of electric vehicle penetration in the country, Mercedes Benz has also opened up its charging network of 140 fast chargers across the country for non-Mercedes electric vehicles.

Iyer believes that in India, the other internal combustion engine powertrains will continue to play a pivotal role.