Mercedes-Benz plans to increase EV assembly in India for cost-saving and carbon neutrality goals
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German luxury carmaker Mercedes-Benz is considering increasing the assembly of electric vehicles at its Indian plant to achieve cost savings and meet its objectives of zero-emission mobility and a carbon-neutral setup.
Mercedes-Benz India, which currently assembles its flagship electric luxury sedan EQS at its Chakan facility in India, is assessing the localization of additional models based on market demand.
The carmaker’s Managing Director and CEO, Santosh Iyer, informed the Press Trust of India, “Our final goal is zero-emission mobility and carbon-neutral setup, which not only means about tailpipe emissions but also from the recyclability of the car to the carbon footprint that we generate by producing these cars.”
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He added, “We have to look at this holistically, and therefore, producing EVs was the logical step, and we will continue in that direction as the market demand changes.”
Mercedes-Benz India began assembling the EQS at the Chakan plant in October 2022.
The EQS is the only electric vehicle model assembled locally among the four it currently sells in India—the EQA, EQB, and EQE SUVs and the EQS sedan.
Acknowledging the benefits of local assembly, he said, “I think localization helps us to bring certain cost advantages. Today, an EQS is available at around Rs 1.5 crore, which otherwise would have been a bit more expensive. So that really helps us.”
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Globally, Mercedes-Benz has set a target to achieve net carbon neutrality for its entire fleet of new vehicles across the entire supply chain and vehicle lifecycle by 2039. By the same year, it aims for all its production plants worldwide to operate at 100% renewable energy with zero CO2 emissions.
Under its Ambition 2039 initiative, the company also aims to reduce CO2 emissions per passenger car in its new vehicle fleet by up to 50% across all stages of the supply chain by the end of this decade compared to 2020 levels.
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