Mercedes-Benz India’s Managing Director and CEO, Santosh Iyer, has praised the Central government’s commitment to the transition from internal combustion engine (ICE) cars to electric vehicles (EVs). Iyer referred to the recent statement by India’s G20 Sherpa, Amitabh Kant, reaffirming the country’s long-term plan to maintain a 5% tax on electric cars and 48% tax on hybrid vehicles.
On Thursday, Mercedes-Benz launched its first electric Maybach SUV, the Maybach EQS 680, starting at Rs 22.5 million (ex-showroom). Iyer highlighted the government’s EV-focused policies, including a 5% GST on electric cars and zero road tax in many states, which has driven down prices and encouraged EV adoption.
Currently, hybrid cars face an effective tax rate of 48%, while electric cars are taxed at 5%.
Mercedes-Benz saw a 9% year-on-year sales growth in the first half of 2024, with electric cars making up 5% of total sales, up from 2% last year. Iyer emphasized the importance of educating customers on the benefits of EVs and expects strong sales for the Maybach EQS 680, which targets celebrities and high-end buyers.