Mercedes-Benz to Manufacture EQS SUV 580 in India, Its First Production Outside the US

This is to be the first time that Mercedes-Benz has the manufacturing of this electric SUV carried out outside the US. The brand aims at producing its electric SUV, the EQS SUV 580, in India. It is going to be its first production facility out of the United States as the company’s move highlights a commitment to the growing demand for electric vehicles in the Indian market.
India-bound, the seven-seater EQS SUV 580 will have a 122-kWh battery with an electric-only range of 809 km on a single charge is what is estimated to be around ₹1.4 crore. However, despite being the initial set to reach the Indian market, Mercedes-Benz has been producing the EQS sedan in India for 18 months, after selling over 500 units since launch.

The plan is to manufacture both EQS sedan and SUV here, which would be a strategic move on its part to step up the assembly line of electric vehicles in the Indian market because demand for such has been increasing lately, said Mercedes-Benz India Managing Director and CEO Santosh Iyer. With an entire EQS portfolio coming for sale, things are expected to pick up further and give our customers a more complete range of options. In fact, he also pointed out that EQS SUV is the third luxury EV launched by Mercedes-Benz in India this year.

The company is investing heavily in India for supplementing its manufacturing presence. In 2024, Mercedes-Benz plans to invest an additional ₹200 crore more to increase its manufacturing capabilities, new product introductions and the digitization of production processes. Mercedes-Benz, in this role, will have invested a cumulative ₹3,000 crore in India. This fits well within the ‘Make in India’ program of the government that subsequently begets value for consumers in India, better due to greater foreign manufacturers’ confidence in local production capabilities.

Mercedes-Benz had in its EV portfolio in India six models: the EQA SUV, EQB SUV, EQE SUV, EQS SUV, EQS 580 sedan, and the ultra-luxury Mercedes-Maybach EQS 680 SUV. Its sales of EVs went up rather well too-60% up in the first half of 2024 (H1 2024) against the same period previous year. The current EV sales stood at 5% of the total sales of the company, more than doubling from 2.5% in 2023 end.

The other luxury car companies are now looking to upgrade their domestic production in the country to cash in on the increased demand for high-end electric automobiles in the country. UK-based Jaguar Land Rover has actually set up CKD units of its flagship Range Rover models lately.