Mercedes Benz makes India its first base outside Germany to assemble EVs

Mercedes Benz, the German luxury carmaker, has launched recently its second electric car EQS 580 sedan, in India. It mentioned that the company would manufacture the EV in Germany. However, India will be its first base to assemble EVs outside Germany. With this decision, Mercedes becomes the only and first luxury carmaker to assemble electric vehicles in the county. It will give an edge to our country over its competitors in terms of cost.

 

Mercedes Benz, the luxury carmaker, introduced its first locally assembled electric vehicle EQS 580, in India. On Friday, the company announced that it has established its first plant outside Germany in Chakan, Pune, for EVs.

 

The Head of Operations and ED of Mercedes Benz India, Mr. Venkatesh Kulkarni, said that the company manufactures EQS globally at its mother plant in Germany’s Sindelfingen. India will become the first base of the assembly after Germany.

 

The luxury automaker works with 6 CKD (completely knocked down) plants, globally. The import of Completely Built Units comes with high taxes in India. On the other hand, cars assembled in the country have comparatively lower import duties.

 

Mercedes Benz EQS 580 comes with a starting price of Rs 1.55 crore. It is the second EV in this portfolio of the company. It comes in our country in a Semi Knocked Down kit, which is then assembled in the Pune plant. Its range is 857 km, which is ARAI-certified and the highest among all EVs in India. However, its range at WLTP real-world conditions is 677 km.

 

The model manufactured at the Sindelfingen plant of the company is sold out for one year. Indian customers also need to wait for its arrival.

 

Mercedes Benz Pune plant locally assembles 14 units with a workforce of around 140 people and 30 experts. These experts have specialized experience in the EV manufacturing journey. But, the parts of the EQS are imported.

 

The annual investment in the plant ranges between Rs 150 crore to Rs 250 crore. It usually depends on the number of units. Till now, the manufacturer has invested Rs 2600 crore in the plant.

 

Kulkarni also talked about the expansion of the company’s manufacturing facility. He mentioned that if the market allows, the possibility of expansion will rise. In such a scenario, the carmaker will plan to double the capacity. However, it will require adequate investments and time.

 

Currently, the manufacturing capacity of the plant is 20,000 models. The company is further planning to make more than 16,000 models this year. Moreover, it is already having an order of 7000 units.

 

At present, the assembly shop is working in one shift and the body shop in two shifts. However, the former will start running in two shifts in October. It indicates that the demand and production requirement is increasing due to the festive season.

 

In October 2022, Mercedes Benz jumped into the market of luxury EVs in India, with the launch of its EQC SUV.