📷 Image Credits: The Times of India
Mercedes-Benz has announced its intention to invest $500M in India’s EV market, contingent on the stability of a 5% GST for the next ten years. Santosh Iyer, the MD & CEO, emphasized the importance of maintaining favorable taxation policies to enable long-term planning in the mobility sector. With a focus on electrification, Iyer stated that a clear commitment to the current tax rates is crucial for companies like Mercedes-Benz to make substantial investments in the EV segment. The company’s growth in recent years has been attributed to the expanding road infrastructure in the country. The increase in intercity travel has driven demand for safer, more comfortable, and efficient vehicles, positioning Mercedes-Benz for further success in the market.
Regarding EV penetration, Mercedes-Benz has seen significant growth and aims to sustain this momentum. The company already offers three electric models and plans to introduce more EVs to capture a larger market share. The upcoming launch of the fourth electric vehicle, EQA, demonstrates Mercedes-Benz’s commitment to expanding its electric lineup. In the first quarter of this year, the company reported a 15% year-on-year growth, signaling a positive trajectory in sales performance.
Iyer stressed the importance of maintaining the 5% GST rate on electric vehicles for the next decade to incentivize investment in EV technology. He highlighted the favorable impact of the differential GST rates between EVs and combustion engine cars in pricing competitiveness. Moreover, Iyer pointed out that infrastructure development, particularly in roadways, plays a crucial role in supporting the automotive industry’s growth. By advocating for a long-term roadmap on taxation policies and continued focus on EV infrastructure, Mercedes-Benz aims to contribute significantly to India’s electric mobility transition.