In line with its commitment to net-zero mobility, the German luxury car maker is rolling out a far-reaching plan to expand its EV assembly capacity in India dramatically
Mercedes-Benz, the renowned German luxury carmaker, is exploring the possibility of expanding its electric vehicle assembly at its Indian plant. This strategic move aims to achieve cost savings and contribute to the company's unflagging commitment to zero-emission mobility and a carbon-neutral setup.
A senior company official revealed that Mercedes-Benz India, currently assembling its flagship electric luxury sedan EQS at its Chakan facility, is also evaluating the potential to localise other models based on market demand.
This decision could potentially reshape the Indian automotive market and accelerate the country's transition towards sustainable mobility.
Since October 2022, Mercedes-Benz India has been assembling the EQS at the Chakan plant. It is the first locally assembled model out of the four EV models sold in India – SUVs EQA, EQB, and EQE, and the EQS sedan. The success of the EQS assembly demonstrates the company's operational prowess and the feasibility and potential of localising electric vehicle production in India. These models, priced between Rs 66 lakh and Rs 1.6 crores, reflect Mercedes-Benz's resolve to roll out its luxury electric vehicles in the Indian market.
Mercedes-Benz has set the bar high with its ambitious sustainability goals. The company aims to achieve net carbon neutrality for its entire fleet of new vehicles, spanning the value chain and vehicle life cycles, by 2039. This global target exemplifies Mercedes-Benz's leadership in the automotive industry and its dedication to reducing carbon emissions. By the same year, the company also plans for its production plants worldwide to operate entirely on renewable energy, resulting in zero CO2 emissions.
Additionally, under its Ambition 2039 initiative, Mercedes-Benz aims to reduce CO2 emissions per passenger car in its new vehicle fleet by up to 50 per cent across all stages of the value chain by the end of this decade, compared to 2020 levels.
Mercedes-Benz reported a 9 per cent increase in sales, reaching 9,262 units in India during the first half of 2024, marking its highest-ever half-yearly sales in the country. Electric vehicles (EVs) made up over 5 per cent of the total sales volume, with EV sales growing by 60 per cent in H1 2024 compared to the same period last year.