Mercedes-Benz India is eyeing electric entry-level models to attract newcomers to the luxury car market, aiming for another year of substantial growth, according to Managing Director and CEO Santosh Iyer. The company recently launched the all-electric entry SUV EQA 250 at an initial price of Rs 66 lakh, alongside introducing the new EQB 350 SUV (5-seater) priced at Rs 77.5 lakh and the EQB 250+ SUV (7-seater) at Rs 70.90 lakh (all prices ex-showroom, India).
Later this year, Mercedes-Benz plans to introduce the EQS Maybach SUV and electrified G-Class models in India.
"We are focusing on attracting first-time luxury car buyers by offering electric models with a compelling total cost of ownership (TCO)," Iyer told PTI. He highlighted that the new EQA and EQB electric vehicles address concerns among young customers with household incomes above Rs 1 crore who have been hesitant to switch to luxury due to higher TCO associated with combustion engine vehicles.
"With a lower TCO compared to their combustion engine counterparts, these electric vehicles will expedite their transition to the luxury segment," Iyer explained.
"For us, if customers prioritize TCO as a value proposition, transitioning to EVs can facilitate a quicker entry into the luxury segment," he added.
Iyer emphasized the strategic importance of models like the EQA in attracting new customers, especially first-time luxury buyers considering EVs due to their lower overall ownership costs compared to internal combustion engine vehicles.
Mercedes-Benz India plans to cater to both entry-level luxury and top-end segments with its expanding EV portfolio, including the upcoming launches of the EQS Maybach SUV and electrified G-Class, both priced above Rs 3 crore.
"Our lineup this year, from the EQA to the EQS Maybach SUV and electrified G-Class, underscores our dominance across the spectrum from entry-level to top-end luxury," Iyer noted.
Looking ahead, Iyer expressed confidence in achieving double-digit growth by the end of the year, buoyed by upcoming product launches during the festive season. The company reported a 9% increase in sales to 9,262 units in the first half of 2024, with its electric vehicle portfolio growing by 60% and constituting 5% of total sales volumes.
In 2023, Mercedes-Benz India achieved its highest-ever sales in the country, recording 17,408 units and a 10% growth year-over-year.
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