Mercedes-Benz, one of the first major carmakers to express interest in India’s new EV policy, has given conditional support to the program. The German luxury brand is ready to invest $500 million, but only if the government guarantees the current 5% GST on electric vehicles for the next ten years.
‘We need to see whether it makes sense… Investments can be done only if the tax advantage of 5% GST on EVs will continue for the next ten years… that gives us confidence,’ Mercedes India MD & CEO Santosh Iyer told the news portal. ‘This will prompt us to do a business case to start with. Today, there is no business case.’
Mercedes has been a pioneer in electric mobility in India, aiming to offer a portfolio of six green cars. Currently, its electric range includes the EQS limousine, EQB MPV, and EQE SUV, all assembled at its factory outside Pune. The company is also set to launch its smallest electric SUV, the EQA, and is planning to introduce the EQS Maybach and electric G Class SUVs to the market soon.
Iyer emphasised the importance of government support for the growth of green mobility in India through a favourable tax structure. ‘On our part, we will do everything possible to accelerate the transition to EVs through our six models,’ he said.
Addressing the issue of inadequate charging infrastructure, Iyer called for collaboration between companies and service providers to create a dense network of charging stations. ‘Moreover, like the telecom industry and mobile tower sharing, infrastructure for electric chargers can also be common and pooled,’ he suggested.
Iyer also highlighted the critical role of government support as India moves aggressively towards carbon neutrality. ‘Emission neutrality is needed. The road to a carbon-free ecosystem will come from zero emissions, where the answer is electrification,’ he stated.
As Mercedes-Benz eyes the future of electric mobility in India, the company’s conditional commitment underscores the need for stable and supportive policies to foster long-term investments and innovation in the EV sector.
