The Only Nation Other Than the United States That Will Manufacture the Mercedes EQS SUV 580 Is India

Nitin Konde, Apoorva Bajj

Sep 17, 2024 — 3 min read

The Only Nation Other Than the United States That Will Manufacture the Mercedes EQS SUV 580 Is India

Mercedes-Benz India has made a big step towards improving its electric vehicle portfolio by beginning local manufacture of its top-of-the-line electric SUV, the EQS 580 4MATIC, at its Pune facility. This move is meant to boost the company's electric vehicle portfolio. By manufacturing the luxury electric SUV, India became the first country outside of the United States to do so. This achievement represents a significant milestone for Mercedes-Benz's global electric vehicle strategy as well as its commitment to the 'Make in India' initiative.

On 16 September, the EQS SUV 580 was introduced to the market with an introductory price of INR 1.41 crore. It features a driving range of 809 km and comes with a high-voltage battery warranty that is valid for 10 years.

Santosh Iyer, the Managing Director and Chief Executive Officer of Mercedes-Benz India, expressed his pride in the introduction of the locally made EQS SUV 580 4MATIC, which further solidifies India's position as a major market in the company's global electric vehicle roadmap. With this significant achievement, the firm is able to demonstrate its manufacturing skills and establish its dedication to assisting India in its journey towards electrification.

Mercedes-Benz’s Aggressive Push Toward Electrification

In the first half of the year, the company's Battery Electric Vehicle (BEV) penetration is currently at 5% of total sales. The introduction of this vehicle is a component of Mercedes-Benz's strong push towards electrification, which is in line with the company's aim for a future that is entirely electric and environmentally friendly. The production of the EQS luxury sedan was followed by the production of the EQS 580 4MATIC, which is the second BEV to be made locally. Over five hundred EQS sedans have been sold by the company in India so far.

To this point, the company has indicated that it will be investing a total of INR 200 crore in 2024 for the purpose of manufacturing operations, the launch of new product lines, and the digitisation of manufacturing processes. Up till the year 2024, the total investments made by the company amount to INR 3000 crore.

With six luxury BEVs already in the market, Mercedes-Benz will have the most extensive BEV range in India. It is because of India's rising desire for SUVs, which presently account for 55% of the luxury car market, that the company has made the decision to construct the EQS SUV locally. According to Iyer, this is the pinnacle of technology, luxury, and space, at the same time that it prioritises sustainability.

Pune Being a Manufacturing Hub for the Company

Both battery electric cars (BEVs) and vehicles powered by internal combustion engines (ICE) are currently manufactured at the Pune plant. The growth rate of the corporation was 60% in the first quarter of 2024.

The EQS SUV 580 4MATIC local production highlights the flexibility of producing internal combustion engine (ICE) and battery electric vehicle (BEV) vehicles under one roof, as well as managing a complex supply chain process, complex battery fitment process, sophisticated MBUX Hyperscreen installation, and other complex processes.

According to Vyankatesh Kulkarni, the executive director and head of operations for Mercedes-Benz India, the company is the only luxury original equipment manufacturer (OEM) in India to produce two battery electric vehicles from its production site alone.

The EQA, EQB, EQE, and EQS, as well as the ultra-luxurious Mercedes-Maybach EQS 680 SUV, are the six vehicles that are included in Mercedes-Benz India's battery electric vehicle (BEV) portfolio, according to Kulkarni, who also notes that the company has achieved great progress in the field of electrification.

As a result of the company's BEV sales increasing by 60% during the first half of 2024, the country accounted for 5% of the company's total sales. There have already been over 500 units of the EQS 580 sedan sold in the local market, and there have been confirmed bookings for more than 80 Electric G-Class cars prior to the launch of the vehicle.