Going all-electric a better strategy for India than hybrids: Mercedes Benz

Mercedes-Benz announced last month that it would continue to sell combustion-engined cars – even in some developed markets – well into the 2030’s, contrary to its plan of transitioning into an all-electric brand by 2030 ‘wherever market conditions allow’.

However, while the company may be dialling back its EV plans elsewhere, it believes that electrification should stay on the fast track in India. Sagree Sardien, head of Region Overseas, Mercedes-Benz Cars, says, “For the Indian market, I think the better strategy would be to go electric as opposed to go to plug-in hybrids.”

Mercedes-Benz sells just one plug-in hybrid model in India, the AMG GT 4-door coupe. But it has three electric models – the EQS sedan, and the EQB and the EQE SUVs – with plans to introduce three more this year.

‘Indian market committed to EVs’

Sardien explained that she sees India as a market committed to EVs and thus advises that the country “takes the journey faster to battery electric vehicles”. Sardien is also confident that the EV market will continue to grow for the brand. “Whilst we are at 4 percent EV penetration in India, we anticipate double-digit penetration going forward,” Sardien said. For reference, globally, Mercedes EVs account for 19 percent of its total sales.

Mercedes India had record sales in 2023 selling 17,408 units, which is close to its current 20,000 production capacity limit. However, Sardien says the company is ready to cater to any changes in demand patterns and volume. “The plant in Pune has adequate capacity to be able to handle 20,000. If the market demand changes, of course, we have the flexibility, scalability and speed to adapt. So, if for some reason the Indian market accelerates faster than anticipated, we can scale up equally.” Currently, the EQB and EQE SUVs are both brought in as CBUs, whereas the EQS is assembled locally.