Mercedes-Benz is set to locally assemble its EQS SUV 580 in India, marking a significant move to meet soaring demand for electric vehicles and reduce import costs
Mercedes-Benz is ramping up its electric vehicle (EV) offerings in India with the announcement of local assembly for the EQS SUV 580. This marks the carmaker's second electric model to be produced in the country, reflecting a strategic response to increasing demand for emission-free mobility solutions.
India will be the sole market outside the United States where the EQS SUV 580 is assembled, a move designed to circumvent the high customs duties imposed on fully imported vehicles. Locally assembled models, produced from knocked-down kits (CKD), are subject to a 15 percent duty, a significant reduction compared to the 110 percent duty on fully imported units. The EQS SUV 580 will be priced at Rs 1.41 crore, making it more accessible to the Indian market.
This initiative aligns with Mercedes-Benz's objective to cater to the growing consumer interest in electric SUVs, which now represent 55 percent of all car sales in India. Santosh Iyer, Managing Director of Mercedes-Benz India, highlighted that the company's EV sales have doubled to 5 percent of overall sales in the first half of 2024 compared to the previous year.
The local assembly of the EQS SUV 580 is expected to bolster Mercedes-Benz’s position in India’s rapidly expanding EV market, demonstrating a commitment to meeting the country's rising demand for sustainable transportation options.