LUXURY car maker Mercedes-Benz is looking at electric entry-level models to attract first-time buyers in India, as it aims for another double-digit growth this year, its Managing Director and CEO Santosh Iyer said on Monday.
The company, which launched all-electric entry SUV EQA 250 at an introductory price of Rs 6.6 million (£61,673), has also introduced the new EQB 350 SUV (5-seater) priced at Rs 7.75 million (£ 72,419) lakh and EQB 250+ SUV (7-seater) tagged at Rs 7.09 million (£66,251.58).
It will also launch the EQS Maybach SUV and electrified G-Class models in India later this year.
"Because of the compelling total cost of ownership (TCO) argument, we are also looking at a lot of first-time buyers in the luxury segment to consider the EQA and the EQB as a better option to shift to luxury," Iyer told PTI.
The new EVs from Mercedes-Benz - EQA and EQB - can solve the issues of young customers with household income of over Rs 10 million (£93,443.70), who want to shift to luxury but always found TCO to be higher when it comes to combustion engine counterparts, he added.
Now, with a lower TCO compared to a combustion engine counterpart, it will make their shift to the luxury segment faster, he added.
"So for us, if customers are looking into TCO as a value proposition, I think the shift to EV can help them to accelerate their jump into the luxury segment even faster," Iyer said.
Iyer, however, said Mercedes-Benz India will address the whole spectrum from entry-level luxury to top-end with its EV portfolio and will launch two top-end luxury electric vehicles later this year.
On the outlook for the rest of the year, Iyer said, "We have new products coming up for the upcoming festive season. So, we feel we should be able to close the year with a double-digit growth as projected earlier".
The company reported a 9 per cent growth at 9,262 units in sales in India in the first half of 2024. Its electric vehicle portfolio grew by 60 per cent in H1 2024, comprising 5 per cent of total sales volumes.
In 2023, the company recorded its best-ever year in its history in India with sales of 17,408 units, a growth of 10 per cent. (PTI)
Bobby Bawa