Indian Luxury Car Buyers Lead the Charge Toward EVs & Top Luxury Car Brands Are Obliging

Summary:

In India, luxury car buyers are embracing electric vehicles (EVs) more rapidly than their mass-market counterparts, pushing automakers to broaden their EV portfolios. While initial sales of mass-market electric cars surged, they have since slowed down, dropping 10% year-on-year in August, with only 6,335 units sold. In contrast, luxury carmakers are reporting strong demand, with a healthy order book and a focus on expanding their electric offerings.

Mercedes-Benz Leads the Way with New EV Launches

Mercedes-Benz recently unveiled the EQG, an electrified version of their iconic G Wagon, which is expected to hit the Indian market by late 2024 or early 2025. Despite the delayed release, 80 buyers have already placed orders for the model, priced at ?3.5 crore. Mercedes has also seen its EV sales double in the first half of 2024, with electric vehicles now accounting for 5% of its total sales.

BMW Group India's Strong EV Performance

BMW Group India has also made significant strides in the luxury EV segment, with models like the i7, iX, i5, and Cooper SE leading the charge. The company sold over 2,000 EVs in the first half of 2024, with EVs comprising 6% of its total sales. This indicates that affluent consumers are more willing to transition to electric vehicles, taking the leap of faith faster than the mass market.

Maybach Goes Electric:

The EQS680 SUV Mercedes took another step forward by launching the electrified Maybach EQS680 SUV at ?2.25 crore (ex-showroom). Interestingly, this EV version is priced lower than the fossil-fuel-powered Maybach GLS, which costs ?3.7 crore (on-road). For many of Mercedes' customers, owning an electric Maybach is not just a purchase—it’s a statement of their commitment to sustainability.

Government Incentives Driving EV Adoption

Favorable government policies, such as a 5% GST on EVs compared to 43% on traditional internal combustion engine (ICE) vehicles, along with road tax exemptions in certain cities, have allowed manufacturers to price electric models competitively. This has significantly contributed to the growth of the luxury EV market in India.