Luxury car buyers in India are adopting fully electric vehicles at a faster pace than mass-market consumers, prompting manufacturers to expand their EV offerings, according to a report by Economic times (USA).
While mass-market electric car sales have slowed, falling 10 percent year-on-year to 6,335 units in August after an initial surge, the luxury segment is seeing an opposite trend. Premium carmakers are reporting a robust order book and are making significant efforts to meet rising demand.
Mercedes-Benz recently revealed its plans for the launch of the EQG, an electric version of its iconic G-Wagon. While this model is expected to hit the Indian market in late 2024 or early 2025, interest is already high, with 80 orders placed for the 3.5 crore vehicle.
Despite starting from a smaller base, the company’s EV sales contribution doubled to 5 percent of total sales in the first half of 2024 compared to the same period last year.
BMW Group India, a leader in the luxury EV segment with models such as the i7, iX, i5 and Cooper SE, crossed 2,000 EV sales in the first six months of 2024. EVs accounted for 6 per cent of its total sales during this time.
The report quoted Santosh Iyer, Mercedes-Benz’s managing director and CEO, as saying: “Clearly, consumers at the higher end of the market can transition to electric much faster than the mass market as they are ready to take that leap of faith.”
Mercedes on Thursday unveiled the electric version of its Maybach luxury line, the EQS680 SUV, priced at Rs 2.25 crore (ex-showroom). It is the brand’s fifth EV in India and is priced lower than its petrol-powered counterpart, the Maybach GLS, which retails at Rs 3.7 crore (on-road). Many Mercedes customers see the switch to electric, with its green number plate, as a social statement, so electrification of this model is an important step, Iyer added.
India is a key market for Maybach, which is in the top 10 globally and is experiencing rapid growth. Since its introduction in 2016, Mercedes has sold 1,500 units in the country, most of which were sold after the pandemic.
“A lower GST of 5 per cent on EVs compared to 43 per cent for internal combustion engine (ICE) models and road tax exemption for EVs in certain cities has enabled manufacturers like us to price EV models at par or cheaper than ICE models,” Iyer told ET.
First published: September 6, 2024 | 9:45 am IS
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