Mercedes-Benz India seeks long-term policy commitment for electric mobility
The company, which increased EV penetration to 6% in the first quarter of 2024, expects the momentum to continue with three new EV models slated for launch this year.
India wants the government to commit to continuity in policies that support electric mobility for the next eight to ten years for stable and better planning towards zero-emission mobility, its Managing Director and CEO Santosh Iyer said on Tuesday.
Besides, the company feels that extending incentives for electric vehicles to hybrid vehicles will extend the timeline for the transition to emission-free mobility.
The company, which had increased EV penetration to 6% in the first quarter of 2024 from 2.5% earlier, expects the momentum to continue with three new EV models slated for launch this year, starting with the EQA next week.
"A much more clear roadmap when it comes to taxation on EVs," Iyer told PTI when asked about the company's expectations from the upcoming Union Budget.
"We understand that the Budget may not address the GST topic, but at least if you are able to get a commitment that for the next eight to ten years, this kind of taxation benefit will continue, this will really help brands like us to plan long term and have more commitments when it comes to investments for the EVs," he said.
For electric vehicles, the government has already given 5% GST compared to 48-50% on internal combustion engines, Iyer added.
Highlighting investment in infrastructure as another key aspect, he said, "One of the biggest drivers for our growth has been the growing road infrastructure and intercity road infrastructure that has come up in the last couple of years."
"One big line item that we will see in the Budget is the capital expenditure on infrastructure. We expect (it) to go up if possible, so that not only it helps demand but also the indirect benefits of it for the country also is great," he added.
When asked about the discussions on extending the GST benefits given to EVs on hybrid vehicles, Iyer said, "Currently we can see electric as the only option when it comes to zero-emission driving. Now on that road, if we add newer technologies, it will delay the transition, for sure."
Iyer further said, "It is up to the government and the stakeholders to see how soon they want to accelerate the transformation to carbon-free mobility and emission-free mobility."
On the company's roadmap for electric mobility, he said it is committed to zero-emission mobility but "the EV transition is a marathon and not a sprint".
"We have already three (EV) products in the market with which we achieved 5-6% penetration and we will continue with the EQA (to be launched next week) to further penetrate," Iyer said.
Two more EV models will be launched later this year, he added.
In the first quarter of 2024, the company posted total sales of 5,412 units, a growth of 15% from the year-ago period.
On local assembly of EVs in India, Iyer said Mercedes-Benz India will consider other models too depending on demand. It currently assembles EQS at its Chakan plant.
Edited by Jyoti Narayan
