Mercedes-Benz India has announced plans to manufacture its electric sport utility vehicle (SUV), the EQS SUV 580, locally. This makes India the only market outside the company’s Tuscaloosa plant in the United States where the model will be produced, underscoring the company’s growing confidence in the local demand for electric vehicles (EVs).
While this is not the first EV that Mercedes-Benz has manufactured in India, as it has been producing the EQS sedan in the country for the last 18 months, the EQS SUV 580 marks the brand’s latest commitment to India’s growing electric vehicle market. The company has sold 500 units of the EQS sedan so far.
The EQS SUV 580 is currently unavailable in India, but it is expected to enter the market soon. Featuring a 122 kWh battery with an impressive 809 km range on a single charge, the SUV will be priced at Rs 1.4 crore.
Expanding the EQS Portfolio to Boost Sales
Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, emphasized that offering a complete portfolio of EQS vehicles—including both sedan and SUV options—will help boost sales and offer Indian customers a more comprehensive luxury EV lineup. “Having an entire portfolio will offer a more holistic option to the customer,” Iyer said.
The EQS SUV is the third luxury EV launched by Mercedes-Benz in India this year, further solidifying the brand’s commitment to expanding its electric offerings in the country.
Commitment to ‘Make in India’ with Rs 200 Crore Investment
Mercedes-Benz is doubling down on its commitment to the Indian market with plans to invest an additional Rs 200 crore in 2024. This investment will be directed toward manufacturing operations, the start-up of new products, and digitizing the company’s manufacturing processes. The localisation of the EQS SUV, according to Iyer, showcases the company’s local competencies and adds value for Indian customers, aligning with the Indian government’s ‘Make in India’ initiative.
With this new investment, Mercedes-Benz’s cumulative investment in manufacturing capacity in India will reach Rs 3,000 crore.
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Mercedes-Benz EV Lineup in India
Mercedes-Benz’s lineup of electric vehicles now includes six models: the EQA SUV, EQB SUV, EQE SUV, EQS SUV, EQS 580 sedan, and the ultra-luxury Mercedes-Maybach EQS 680 SUV. In 2024 alone, the company launched three EVs in India: the EQA, EQS SUV 580, and the Mercedes-Maybach EQS 680 SUV.
The company’s focus on EVs has paid off with a 60% growth in EV sales in the first half (H1) of 2024. Moreover, the penetration of EVs within Mercedes’ overall sales has doubled, jumping from 2.5% in 2023 to 5% in H1 2024.
Record-Breaking Sales in H1 2024
Mercedes-Benz posted its best-ever first-half calendar sales in H1 2024, delivering 9,262 vehicles between January and June—a 9% year-on-year growth. SUVs accounted for 55% of these sales, while top-end vehicles (those priced above Rs 1 crore) contributed 25%. The Maybach portfolio was the fastest-growing, recording a staggering 108% growth in H1 2024.
Mercedes-Benz India currently has an order book of 2,000 vehicles and aims to close the year with double-digit growth.
Luxury Carmakers Shift to Local Production
Mercedes-Benz’s move to manufacture more electric vehicles locally reflects a broader industry trend among luxury carmakers in India. Earlier in May, British luxury brand Jaguar Land Rover (JLR) India, owned by Tata Motors, started producing completely knocked-down (CKD) units of its flagship Range Rover and Range Rover Sport models in India, marking the first time these cars have been manufactured outside their Solihull plant in the United Kingdom since 1970. This local production has allowed JLR to reduce prices by 18-22%.
JLR has also committed to launching six new EVs in India by 2030, starting with the Range Rover battery electric vehicle (BEV), which is slated to debut next year.
