With the launch of its all-new EQA SUV, Mercedes Benz India is hoping to capitalize on the younger demographic in the nation to hasten the adoption of electric vehicles.
Mercedes anticipates a large number of dual-income couples with a combined income of about Rs 1 crore, as it targets a consumer base of individuals aged 28 to 33. This will be one of the youngest groups that the company that makes three-pointed stars is targeting.
The average age of an Indian millionaire is only 32 years old, per the Hurun India Luxury Consumer Survey 2023. According to the survey, there are currently over 700,000 millionaire homes in India, and during the next five years, this figure is expected to increase by 75%.
Santosh Iyer, MD Of Mercedes Benz India, says it was clear that the company will adopt a top-down strategy approach for EVs.
“From a numerical perspective, the penetration of EVs has already doubled to 5% from last year. There is increased acceptance and awareness among the prospective customer base. With the EQA , we would like to accelerate the transition further,” said Iyer.
The head of Mercedes Benz India has often said the shift towards zero-emission vehicles is a “marathon, as against the sprint,” and the company is taking all the fundamental measures to address prospective buyers’ “anxieties.”
“There is a growing shift towards sustainability, from the food you consume to the healthy lifestyle our buyers enjoy, and EQA fits very well with consumers with an income of about Rs 1 crore. They are entering the luxury car segment for the first time; they would like to stand out with a green number plate and a Mercedes Benz badge,” added Iyer.
The company is relying on its financial arm, Mercedes Benz Financial Services, to offer prospective EQA buyers an assured buyback of 67% after four years. This ensures that a prospect must manage merely 37% of funding to acquire a vehicle, and even the EMI will be significantly lower.
Thanks to the lower running cost, Mercedes Benz India claims first-time buyers are conscious of price and value packaging. The company adds that compared to an internal combustion engine equivalent—i.e., GLA—through its Star Agility Program, an EQA buyer can save about Rs 80,000 per annum and about Rs 2.4 lakh in four years, along with the depreciation benefit. (This is considering an average down payment of Rs 14 lakh and monthly running of 2000 km).
The EQA has a range of 560 kilometres, and the company claims that it can run 400 kilometres on a 30-minute charge.
On the charging infrastructure front, it has partnered with the FICH App, which has over 1,000 charging stations mapped along with its own charging network at 150 stations.
Apart from the youth, Mercedes Benz feels the EQA could very well be the second or third car in the family for its existing Merc owners to use it for their daily city errands.
Mercedes Benz entered the premium electric vehicle market in 2020 with the EQC, which eventually added EQB and EQS with a local assembly. The company already has a portfolio of 3 electric vehicles, which will be doubled to 6 EVs by the end of the calendar year.
The company launched about six cars in the first half of 2024, and another six new models are lined up for the rest of the years, including EQA and the two new EVs.