Mercedes-Benz is witnessing a significant 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 carmaker’s record sales in India, where luxury car sales are on the rise.
In the first half of 2024, Mercedes sold 9,300 cars in India, with 5 percent being electric models—a marked increase from 2.5 percent last year. Iyer noted that a growing number of younger buyers are drawn to EVs for “differentiation,” particularly after the launch of the new EQS 580 SUV, a 7-seater electric model priced around $168,200.
These buyers, often opinion leaders in their fields—such as doctors and architects—are keen to showcase their transition to electric vehicles. Notably, 15 percent of all EVs sold by Mercedes in India this year were purchased by first-time luxury car buyers, up from 5 percent in 2023, aided by the introduction of new electric SUVs.
Despite the growth, challenges remain. The Indian EV market is currently small, with electric models comprising only about 2 percent of the total 4.2 million cars sold last year. The Indian government aims to increase this figure to 30 percent by 2030.
Mercedes, which announced a $24 million investment in January, is also localizing production. In 2022, the company began assembling EVs in India, with the EQS SUV being its second locally-produced electric model. Iyer emphasized the company’s commitment to the EV transition, aiming to localize production further while addressing the high costs and resale uncertainties that deter some buyers.
