Mercedes-Benz India wants long-term EV policy support: Rediff Moneynews

Jaipur, July 2 (PTI) Mercedes-Benz India wants the government to commit to continuing its policies supporting electric mobility for the next eight to 10 years for stable and better planning towards zero-emission mobility, managing director and CEO Santosh Iyer said on Tuesday.

In addition, the company believes that the introduction of incentives applicable to electric vehicles to hybrid vehicles will extend the time taken to transition to zero-emission mobility.

The company, which increased its EV penetration to 6% in the first quarter of 2024 from 2.5% previously, expects that momentum to continue in the future as it plans to launch three new EV models this year, starting with the EQA next week.

“A much clearer road map as far as taxation of electric vehicles is concerned,” 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 issue, but if we can get a commitment that this type of tax relief will continue for the next eight to 10 years, it will really help brands like ours to plan for the long term and make bigger commitments when it comes to investing in electric vehicles,” he said.

Iyer added that the government has already imposed 5 per cent GST on electric vehicles, while the tax on combustion engine vehicles is 48-50 per cent.

Highlighting investment in infrastructure as another key aspect, he said, “One of the biggest factors in our growth has been the expanding road infrastructure and intercity road infrastructure that has come up over the last few years.”

He added that “one of the major items that we will see in the budget is capital expenditure on infrastructure. We expect it to increase, if possible, so that not only will it support demand but also the indirect benefits of that to the country would be great.”

Asked about the discussions on extending GST benefits given to electric vehicles to hybrid vehicles, Iyer said, “Currently, we may see electric as the only option when it comes to zero-emission driving. Now, on this path, if we add newer technologies, it will definitely delay the transition.”

Iyer further said, “It is up to the government and stakeholders to see how fast they want to accelerate the transformation towards zero-emission and zero-emission mobility.” Referring to the company’s electric mobility roadmap, he said the company is committed to zero-emission mobility, but “the transition to electric vehicles is a marathon, not a sprint.”

“We already have three (EV) products in the market with which we have achieved 5-6 per cent penetration and we will continue with EQA (which will be launched next week) to take it even further,” Iyer said.

He added that two more electric vehicle models will hit the market later this year.

In the first quarter of 2024, the company recorded total sales of 5,412 units, which is an increase of 15% compared to the same period of the previous year.

On local assembly of electric vehicles in India, Iyer said Mercedes-Benz India will also consider other models depending on demand. It is currently assembling the EQS at its Chakan plant.