Mercedes-Benz’s $500M EV Bet Hinges on GST Stability 

In a significant boost to the Indian government’s electric vehicle (EV) policy, German luxury carmaker Mercedes-Benz has announced its readiness to invest the mandated $500 million in its Indian operations. This investment, however, comes with a caveat: the company insists that the current 5% Goods and Services Tax (GST) on EVs must remain unchanged for the next decade.  

Mercedes-Benz has been at the forefront of electric mobility in India, demonstrating a strong commitment to expanding its green car portfolio. The company currently offers the EQS limousine, EQB MPV, and EQE SUV—all of which are assembled at its factory near Pune. With plans to launch its smallest electric SUV, the EQA, and introducing the EQS Maybach and electric G-Class SUVs, Mercedes-Benz is on a trajectory to broaden its electric lineup to six models.  

Santosh Iyer, Head of Mercedes-Benz India, addressed the challenge of inadequate charging infrastructure, emphasizing the need for collaboration between companies and service providers to establish a more extensive network. Iyer remains optimistic about the government’s ongoing support for green mobility, particularly through favorable tax policies.  

This move by Mercedes-Benz underscores the growing momentum in India’s EV sector, as global automakers align with the country’s vision for a sustainable future. The substantial investment from Mercedes-Benz, contingent on GST stability, highlights the critical role of consistent government policies in fostering the growth of electric mobility in India.