Mercedes-Benz Ready to Invest $500M in Indian EV Sector
Monday, 08 July 2024, 14:11 IST
In what certainly goes as a shot in the arm for India's electric vehicle policy, Mercedes Benz has pledged to invest $500 million in its Indian operations on condition of the continuance of a 5 percent Goods and Services Tax on electric vehicles over the next ten years. Mercedes Benz India managing director and CEO Santosh Iyer said, "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-Benz has been a forerunner of electric mobility in India. The company is currently offering some electric vehicles, including EQS Limousine, EQB MPV, and EQE SUV all assembled at its facility in Pune. The company intends to add more models to this electric portfolio with electric SUV AQA, EQS Maybach, and an electric version of the iconic G-Class SUV due for arrival soon.
Even as companies are committed to increasing the range of electric vehicles, an associated charging infrastructure is basically needed, observed Iyer, calling for companies and service providers to jointly acquire land for setting up a dense network, just like mobile tower sharing in the telecom sector.
With the confidence that government support would come, Iyer expressed that it was for the policymakers to provide a 'stable policy regime' so that India could accelerate its shift to green mobility. "From our part we will do whatever possible to fast-track the transition of EVs with our six models", he said.
Mercedes-Benz's conditional investment mirrors larger industry expectations of sustained policy incentives, which have driven EV adoption in India while it aims for carbon neutrality. Iyer succinctly puts it: "Emission neutrality is needed. The way to a no-carbon ecosystem will come from zero emissions, where the answer is in electrification".
Its stance comes in line with the ambitious targets that India has for reducing carbon emissions and promoting sustainable transport solutions, very much emphasizing the requirement of policy continuity and infrastructure development to be able to achieve such ambitious goals.
Mercedes-Benz has been a forerunner of electric mobility in India. The company is currently offering some electric vehicles, including EQS Limousine, EQB MPV, and EQE SUV all assembled at its facility in Pune. The company intends to add more models to this electric portfolio with electric SUV AQA, EQS Maybach, and an electric version of the iconic G-Class SUV due for arrival soon.
Even as companies are committed to increasing the range of electric vehicles, an associated charging infrastructure is basically needed, observed Iyer, calling for companies and service providers to jointly acquire land for setting up a dense network, just like mobile tower sharing in the telecom sector.
With the confidence that government support would come, Iyer expressed that it was for the policymakers to provide a 'stable policy regime' so that India could accelerate its shift to green mobility. "From our part we will do whatever possible to fast-track the transition of EVs with our six models", he said.
Mercedes-Benz's conditional investment mirrors larger industry expectations of sustained policy incentives, which have driven EV adoption in India while it aims for carbon neutrality. Iyer succinctly puts it: "Emission neutrality is needed. The way to a no-carbon ecosystem will come from zero emissions, where the answer is in electrification".
Its stance comes in line with the ambitious targets that India has for reducing carbon emissions and promoting sustainable transport solutions, very much emphasizing the requirement of policy continuity and infrastructure development to be able to achieve such ambitious goals.
