The German luxury automaker Mercedes-Benz has announced that it is prepared to invest the required $500 million in Indian businesses, a significant boost to the government’s EV strategy. However, the automaker stated that if the 5% Goods and Services Tax (GST) on EVs remains in place for the next ten years, it will simply invest the required amount as specified in the EV policy.
Santosh Iyer, MD and CEO of Mercedes-Benz India, stated to the Times of India, “We need to determine whether it makes sense… Only if the tax benefit of 5% GST on EVs will last for the next ten years can investments be made; this gives us confidence.”
“This will prompt us to do a business case to start with,” Iyer continued. There isn’t a commercial case as of yet.”
In India, Mercedes-Benz was a pioneer in the use of electric vehicles, and the company plans to increase the number of green cars in its lineup to six. The EQS limousine, EQB MPV, and EQE SUV are currently included in its electric line; they are all put together at a plant outside of Pune. Along with introducing the EQS Maybach and electric G Class SUVs to the market, the business is also preparing to introduce its smallest electric SUV, the EQA.
Iyer expressed hope that tax breaks will be the main way the government will continue to encourage the expansion of green mobility in India.
“On our part, we will do everything possible to accelerate the transition to EVs through our six models,” Iyer stated.
In response to the criticism of the current EV charging infrastructure, Iyer proposed that businesses and service providers join together to build a denser network. “Moreover, like the telecom industry and mobile tower sharing, infrastructure for electric chargers can also be common and pooled,” he stated.
He underlined how crucial government backing is to India’s efforts to become carbon neutral. “We must achieve emission neutrality. Electrification is the solution, and it will lead to zero emissions and a carbon-free ecology,” Iyer stated.
