Mercedes-Benz EQS 580 SUV To Be Produced In India

In a landmark step towards bolstering its electric vehicle (EV) lineup, Mercedes-Benz India has commenced the local production of its high-end electric SUV, the EQS 580 4MATIC, at its Pune manufacturing facility. This makes India the only country outside of the United States to locally produce this luxury electric SUV, highlighting Mercedes-Benz's strategic commitment to India's EV market and the ‘Make in India’ initiative.

The EQS SUV 580 4MATIC was launched at an introductory price of ₹1.41 crore, a competitive offering in the luxury EV market. The vehicle boasts an impressive driving range of 809 km on a single charge, backed by a 10-year warranty on the high-voltage battery. This move further aligns with Mercedes-Benz’s global push towards an all-electric future.

In producing the EQS SUV locally, Mercedes-Benz underscores India's growing importance in the company’s global electrification strategy. Santosh Iyer, MD and CEO of Mercedes-Benz India, emphasised the company's commitment to the Indian market, stating, “This milestone showcases our manufacturing expertise and reflects our commitment to supporting India’s electrification journey.” The decision also aligns with India's rising demand for luxury SUVs, which now comprise 55 per cent of the luxury vehicle market.

The Pune facility's capability to handle the production of both internal combustion engine (ICE) vehicles and battery electric vehicles (BEVs) under one roof is seen as a significant achievement. Vyankatesh Kulkarni, Executive Director and Head of Operations at Mercedes-Benz India, elaborated on the production's complexity, noting that it involves managing a diverse supply chain, intricate battery fitment processes, and the integration of advanced technologies like the MBUX Hyperscreen in the vehicles.

Mercedes-Benz's current BEV penetration in India stands at 5 per cent of total sales for the first half of 2024. The company has aggressively pursued electrification as part of its global vision, offering six luxury BEVs in the Indian market, including the EQA, EQB, EQE, EQS, and the recently introduced Mercedes-Maybach EQS 680 SUV.

The local production of the EQS SUV 580 marks the second BEV to be manufactured in India by the automaker, following the EQS sedan, which has already sold over 500 units. Mercedes-Benz aims to capitalise on India's growing EV market, targeting a younger, tech-savvy demographic, specifically second-generation entrepreneurs in the age group of 35-42 years, who prefer travelling with their families.

To support its EV ambitions, the company announced an investment of ₹200 crore in 2024 towards manufacturing operations, the introduction of new products, and the digitisation of manufacturing processes. This investment is part of a broader financial commitment, with total investments reaching ₹3,000 crore by the end of 2024.

Mercedes-Benz India experienced a significant 60 per cent growth in the first half of 2024, with BEVs contributing to 5 per cent of total sales. This positive trend is anticipated to continue with the introduction of the EQS SUV 580, which positions the automaker as a frontrunner in the luxury EV segment in India. The company has already received bookings for more than 80 Electric G-Class models ahead of their launch, signalling robust market interest in its premium electric offerings.