Mercedes Benz will be launching 12 models in India this year, including three new electric vehicles (EVs). This was announced during the brand’s recent annual press conference. 2024 will also mark completion of 30 years for the German carmaker in India, setting up its first production facility in the country in 1994.
The brand rolled out its first locally-assembled model the following year in the form of the E-Class W124 sedan. Mercedes clocked the highest-ever annual sales for the Indian market in 2023 by selling as many as 17,408 units. This led to a 10% annual growth over the previous calendar year.
Rs 200 crore investment in 2024
As part of its strategy for 2024, Mercedes Benz will be investing Rs 200 crore on manufacturing operations, new product start-ups, capacity, and digitization of manufacturing processes. The luxury brand is also looking to expand its footprint in India with 20 workshops and presence in 10 new cities in 2024. These new facilities will be powered by green energy.
Mercedes-Benz will also transform 25 facilities to international MAR 20X standards for enhanced customer experience. This is in line with the philosophy of being “Closer to the customer travel time to service a Mercedes-Benz doesn’t exceed more than two hours in most locations.
Focus on EVs, no hybrids
While most of the ICE models from Merc now run on advanced mild-hybrid systems, Mercedes has categorically mentioned that it is not looking at strong or plug-in hybrid models in the future, even in developing markets like India. The company will not deviate from its global philosophy of developing fully-electric models for the Indian market.
Speaking to Express Drives on the sidelines of the GLS facelift launch, Santosh Iyer, Managing Director & CEO, Mercedes-Benz, said, “Most of our lineup is already hybrid, we call them mild hybrids but going to full-fledged hybrids, plug-in hybrids, etc., that’s not our global strategy. We feel we will transition straight from combustion engines to EV. That’s more sustainable, that’s a real zero emission mobility and sustainable mobility in our view, the rest are all stopgap solutions trying to comply with regulatory mechanisms.”
He further added that Mercedes is “fully committed” towards EVs and starting 2025 it will go all in on EVs worldwide. The carmaker will start introducing more and more EVs wherever markets allow.
About localising EVs in India, Iyer said, “We are the first luxury brand to have a locally produced EV, which is the EQS made out of Chakan. We were the first (luxury carmaker) to locally produce it. So I think we are fully committed to the differences. We are more coming from top down. We are one focused on the top end of the EV segment and not at the entry level of the EV segment. And that’s a fundamental change.”
