Mercedes-Benz is going to launch the production of its luxury electric car Mercedes EQS in India, and this is not only a 100% tax on imports of electric vehicles into the country, but also in an effort to electrify the model range in the Asian markets. Note that the German automaker will be the first brand to set up production of a luxury model in India.
It is expected that production of the Mercedes-Benz EQS will start at the end of 2022. Note that since 2020, the brand has been selling its electric cars in India, but their cost is so high that the demand for such cars is very low. It is assumed that the localization of production will allow the brand to reduce the cost of cars for the end customer.
Note that in 2021 Tesla tried to lobby for a reduction in the tax on the import of electric cars to 40%, but it failed. Mercedes-Benz took an easier path – they just started investing in their own production in India. The total amount of funds invested has not been disclosed, but, according to the assurances of the head of the Indian division of the brand, over the past two years the company has invested about $ 54 million in this country, which is not so much on the scale of the brand.