German luxury carmaker Mercedes-Benz said it is ready to invest the required $500 million in its Indian business

Mercedes-Benz's plan to invest $500 million in its Indian business, contingent upon specific conditions related to India's electric vehicle (EV) policy:

However, the carmaker has made one condition before making this investment. The company said it will only invest the prescribed amount, as outlined in the EV policy, if the 5% Goods and Services Tax (GST) on EVs stays for the next ten years.

Notably, Mercedes-Benz has been an early adopter of electric mobility in India and is actively expanding its green car portfolio to include six models.

Its current electric lineup features the EQS limousine, EQB MPV, and EQE SUV, all assembled at its factory outside Pune.

The company also plans to launch its smallest electric SUV, the EQA and is finalizing plans to introduce the EQS Maybach and electric G Class SUVs to the market.

Here are some conditions:

1. Investment Commitment: Mercedes-Benz is prepared to invest $500 million in its Indian operations. This investment is intended to bolster its presence and capabilities within the Indian market.

2. Condition for Investment: The carmaker has specified a condition for this investment. They will proceed with the $500 million investment only if the 5% Goods and Services Tax (GST) on electric vehicles (EVs) remains unchanged for the next ten years. This condition underscores the importance of stable and supportive government policies regarding EVs for long-term investment planning.

3. Focus on Electric Mobility: Mercedes-Benz has been proactive in embracing electric mobility in India. They are actively expanding their range of electric vehicles to cater to the growing demand for green vehicles.

4. Current Electric Vehicle Lineup: Currently, Mercedes-Benz offers several electric models in India, including the EQS limousine, EQB MPV, and EQE SUV. These vehicles are assembled at their manufacturing facility located near Pune.

5. Future Electric Vehicle Plans: The company is gearing up to introduce more electric models in India. They are set to launch the EQA, their smallest electric SUV, and are also finalizing plans for the introduction of the EQS Maybach and electric G-Class SUVs into the Indian market. This expansion demonstrates Mercedes-Benz's commitment to broadening its electric vehicle portfolio and catering to diverse consumer preferences.

In summary, Mercedes-Benz's proposed $500 million investment in India is contingent on favorable EV policies, highlighting their strategic focus on electric mobility and their confidence in the Indian market's potential for growth in this sector.