Will invest if 5% GST on EVs stays for 10 years: Mercedes-Benz

NEW DELHI: In one of the first major carmakers to show interest in govt’s new EV policy, German luxury maker Mercedes-Benz has given conditional support to the programme, saying it is ready to invest the mandated $500 million “provided it gets an assurance that the current 5% GST regime for electrics will continue for a decade.”
“We need to see whether it makes sense…Investments can be done only if the tax advantage of 5% GST on EVs will continue for the next ten years… that gives us confidence,” Mercedes India MD & CEO Santosh Iyer told TOI. “This will prompt us to do a business case to start with. Today, there is no business case.”
Mercedes is one of the few global carmakers to have bet on electric mobility in India very early, and is working towards having a portfolio of six green cars. Today, the company’s electric range includes the EQS limousine, EQB MPV, and the EQE SUV. The cars are assembled at its factory outside Pune. The company is in the process of launching its smallest electric SUV, in the EQA, while also firming up plans to get the EQS Maybach and electric G Class green SUVs to the market.

Iyer said the company is hopeful that govt continues to support the growth of green mobility in India through a favourable tax structure. “On our part, we will do everything possible to accelerate the transition to EVs through our six models.”
Asked about the lack of an adequate charging network for EVs, Iyer said companies and service providers will need to collaborate to make it dense. “Moreover, like the telecom industry and mobile tower sharing, infrastructure for electric chargers can also be common and pooled.”
Iyer said govt should continue to support EVs as India moves aggressively towards carbon neutrality. “Emission neutrality is needed. The road to carbon-free eco system will come from zero emissions where the answer is electrification.”