MUMBAI: In a strategic move towards bolstering its electric vehicle (EV) portfolio in India, Mercedes-Benz is contemplating expanding assembly operations at its Chakan plant to include more EV models, PTI reported. Currently, the luxury automaker assembles its flagship electric sedan, the EQS, at this facility.
Santosh Iyer, Managing Director & CEO of Mercedes-Benz India, told PTI about the company's commitment to achieving zero-emission mobility and carbon neutrality. He highlighted that local assembly not only aligns with their sustainability goals but also offers cost advantages, potentially making EVs more accessible in the Indian market.
"We are aiming for a holistic approach towards sustainability, focusing not just on reducing tailpipe emissions but also on the entire lifecycle carbon footprint and recyclability of our vehicles," Iyer stated in an interview with PTI.
Since commencing EQS assembly in October 2022, Mercedes-Benz India has recognized the benefits of local production, including cost efficiencies and enhanced knowledge in EV technology. Iyer indicated that future assembly decisions will be driven by market demand and the feasibility of achieving production volume thresholds necessary for localizing additional models.
Globally, Mercedes-Benz has committed to making its entire new vehicle fleet carbon-neutral by 2039, alongside achieving zero CO2 emissions at its production plants. This ambition underscores the automaker's broader initiative, Ambition 2039, aimed at significantly reducing CO2 emissions per passenger car.
Reflecting on the company's performance, Mercedes-Benz India reported a notable 9% growth in sales, reaching 9,262 units in the first half of 2024, marking its highest-ever half-yearly sales in the country. EVs accounted for over 5% of these sales, with a 60% increase in EV sales compared to the same period last year.
When asked about future EV models for local assembly in India, Iyer hinted at upcoming surprises similar to the EQS, suggesting a potential expansion of Mercedes-Benz's localized EV lineup in the near future.