Mercedes-Benz India Pushes for Long-term EV Policy Stability

Mercedes-Benz India urges government for a stable and long-term policy on electric mobility to facilitate better planning toward zero-emission goals. CEO Santosh Iyer highlighted the importance of consistent incentives for EVs over hybrids, infrastructure investments, and government commitments to accelerate the transition to emission-free driving.

Mercedes-Benz India is pressing the government to ensure continuity in policies supporting electric mobility for the next eight to ten years, said Managing Director and CEO Santosh Iyer on Tuesday. This stability, he believes, will enable better planning and investment toward achieving zero-emission mobility.

Moreover, the company advocates for maintaining incentives exclusively for electric vehicles rather than extending them to hybrids, suggesting that this would prolong the transition to zero-emission mobility. Mercedes-Benz India, which increased its EV market penetration from 2.5 percent to 6 percent in early 2024, plans to sustain this momentum with three new EV models, beginning with the EQA next week.

Addressing expectations from the upcoming Union Budget, Iyer stressed the need for a clear roadmap on EV taxation. He noted that while the Budget might not address the GST issue directly, a commitment to uphold current tax benefits for the next decade would aid long-term investment planning in EVs.

Iyer also pointed out the critical role of infrastructure investment in driving growth, emphasizing the benefits of enhanced road infrastructure for both demand and the broader economy. As for extending GST benefits to hybrid vehicles, he asserted that prioritizing electric vehicles would prevent delays in achieving zero-emission goals.

Mercedes-Benz remains committed to its zero-emission mobility roadmap, with plans to launch two more EV models later this year and explore local assembly options based on market demand. In the first quarter of 2024, the company reported a 15 percent growth in total sales, reaching 5,412 units.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)