Is Mercedes-Benz considering a new investment strategy in India?

Mercedes-Benz plans to assemble the electric variant of its EQS sedan in India at its Chakan manufacture by the end of 2022.

Mercedes-Benz is reportedly planning to start manufacturing some of these vehicles in India. According to the head of the company’s local unit, this step would be part of a broader strategy to expand the company’s portfolio in the country. The EQS will be one of the 10 new Mercedes models to be launched in India by the end of 2022. The reason for the delay is that the Chakan plant will not only need to be upgraded to accommodate the EQS’s electric powertrain, but staff will also need to be trained to build this new model with its unique powertrain.

Local development

With a car like the EQS, Mercedes will be the first luxury carmaker to assemble electric vehicles in India. Martin Schwenk, managing director of Mercedes Benz India, is confident that the EQS will set the standard for electric vehicles in the country.

Over the past two years, Mercedes has been preparing a roadmap for electric vehicles in India. Future launches will depend on market demand and government regulations, Schwenk added. Daimler, the maker of Mercedes-Benz, has said it wants to invest more than $47 billion in the development of battery electric vehicles worldwide by 2030.

In 2021, Mercedes sold 11,242 cars in India, registering a strong 42.5 percent year-on-year growth. Schwenk believes sales will approach peak levels if pandemic-related challenges and supply chain disruptions, such as the semiconductor shortage, come to an end this year.

With the local assembly of its flagship electric vehicle, Mercedes could gain an advantage in the luxury electric vehicle segment, where rivals such as Audi, Jaguar or BMW import their respective electric vehicles entirely.

Featured photo : © Mercedes-Benz

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Hélène Cougot

Passionnée depuis son plus jeune âge par l’art et la mode, Hélène s’oriente vers une école de stylisme, l’Atelier Chardon-Savard à Paris, avec une option Communication. Afin d’ajouter des cordes à son arc, elle décide de compléter sa formation par un MBA en Management du Luxe et Marketing Expérientiel à l’Institut Supérieur de Gestion à Paris dont elle sort diplômée en 2020. Elle a notamment écrit des articles lifestyle et beauté pour le magazine Do it in Paris et se spécialise en rédaction d’articles concernant le luxe, l’art et la mode au sein du magazine Luxus Plus.********** [EN] Passionate about art and fashion from a young age, Hélène went to a fashion design school, Atelier Chardon-Savard in Paris, with a Communication option. In order to add more strings to her bow, she decided to complete her education with an MBA in Luxury Management and Experiential Marketing at the Institut Supérieur de Gestion in Paris from which she graduated in 2020. She has written lifestyle and beauty articles for Do it in Paris magazine and specializes in writing articles about luxury, art and fashion for Luxus Plus magazine.