Mercedes-Benz Reports Surge in Indian Buyers Opting for Electric Vehicles as Their First Luxury Car

Mercedes-Benz is observing a notable increase in the number of Indian buyers selecting electric vehicles (EVs) as their first luxury car, according to Santosh Iyer, the company’s Managing Director in India. This trend is contributing to the German automaker’s impressive sales figures in the country.

In the first six months of 2024, Mercedes-Benz achieved record-breaking sales in India, selling 9,300 cars. Notably, 5% of these were electric models, doubling the brand’s EV penetration from 2.5% in the previous year. This surge is attributed to a growing segment of young, influential buyers who are opting for EVs to showcase their commitment to new technologies.

Santosh Iyer noted that many of these buyers, including professionals like doctors, lawyers, and architects, are early adopters of EV technology within their circles. The launch of the EQS 580 SUV, a high-end 7-seater electric model priced at around $168,200, is further fueling this shift.

The proportion of first-time luxury car buyers purchasing EVs has increased from 5% in 2023 to approximately 15% this year, driven by the introduction of new electric SUVs. Although India’s EV market is still emerging, with electric models constituting about 2% of the 4.2 million cars sold last year, the government aims to boost this figure to 30% by 2030.

Mercedes-Benz, which has committed $24 million to the Indian market, is adapting to this shift by localizing its EV production. The EQS SUV is the second locally-assembled electric model, following the company’s decision in 2022 to begin assembling EVs domestically rather than importing fully-built units.