Despite some concerns that demand for electric vehicles (EVs) in India is decreasing, Mercedes India CEO Santosh Iyer disagrees. He believes that the fluctuating prices of EVs in different states, due to the withdrawal of subsidies and the introduction of new taxes, are distorting the market. Iyer notes that some states have withdrawn subsidies, leading to increased prices, which is affecting demand. He argues that it’s too early to draw conclusions about EV sales, and that a clear roadmap is needed to achieve 25-30% EV penetration in the market.
Mercedes India’s EV sales have been doing well, with electric models now accounting for 6% of their sales in the January-September period, up from 2.5% last year. Iyer attributes this to the localization of the EQS, which made it more attractive to customers. He believes that running costs are not as critical for luxury car buyers, and that they are waiting for prices to stabilize and come down before making a purchase. Iyer suggests that there should be a long-term plan for EV growth, rather than changing taxes frequently, to achieve scale and drive down prices.