Luxury EV sales surge, Mercedes-Benz reports 8% EV penetration rate
Autocar Professional, 11 Apr '25
The adoption of electric vehicles (EVs) in India's luxury car segment is increasing at a faster rate than in the mass-market passenger vehicle category, with EV penetration reaching approximately 10-12% of total sales for some premium brands, according to Mercedes-Benz India.
With the entry of new manufacturers and the launch of additional EV models in the luxury segment, the industry is expected to maintain electric vehicle adoption at around 10% in the near term.
"The acceptance of EVs in the luxury segment is stronger compared to the mass market. Currently, we have 8% EV penetration, and some other luxury brands are at 10% to 12%," stated Santosh Iyer, Managing Director and Chief Executive Officer of Mercedes-Benz India.
Iyer attributed the higher penetration in the luxury segment to a closer alignment between product offerings and market conditions, along with a greater degree of consumer readiness.
"It is not just about the numbers - it is also the type of EVs being sold. We focus on top-end electric vehicles, while others may offer entry-level EVs. However, acceptance in the luxury segment is stronger," he noted.
Iyer described the growth in penetration as a steady progression over time, rather than a sudden increase. "From 2% to 2.5%, then 4.5%, and now 7-8%, there has been consistent growth. Even without a major expansion of our portfolio, we expect to continue this trend," he said. "The introduction of additional products in the segment is expected to generate further demand, although the current line-up is already contributing to quarter-on-quarter growth."
Mercedes-Benz India does not plan to significantly expand its EV portfolio in the short term but expects ongoing growth to be supported by developments in infrastructure and shifts in consumer preferences.
In the financial year 2024-25, the company's EV sales rose by 51%. During the March quarter, the locally assembled EQS SUV 580 and EQS SUV 450 accounted for an EV penetration rate of 8% of total sales.
In the higher-priced segment, models such as the EQS Maybach Night Series and the G580 SUV with EQ Technology are currently experiencing waiting periods of up to 12 months.
