Mercedes-Benz’s India unit has said that the German luxury carmaker plans to start local assembly of its EQS electric sedan in India this year.
Should the plans pull through, Mercedes will be the first global luxury carmaker to assemble electric vehicles (EVs) in India.
Mercedes Benz expects to start selling the locally-assembled EQS in the Indian market in the fourth quarter of this year.
India has been strigent with high import duties on EVs – India taxes fully built imported cars at as high as 100% – a deterrent for companies.
Tesla Inc has been lobbying the Indian government over the past year to slash import rates on EVs to as low as 40%.
Reuters reports that Mercedes Benz has invested 4 billion rupees ($54 million) India over the past two years, taking its total investments there to $351 million.