Pune, 16 January 2025: Mercedes-Benz is ramping up its manufacturing presence in India, planning to produce three vehicles locally to counter the effects of a weakening rupee. The lineup will include the GLS Maybach, an electric vehicle (EV) variant, and a combustion engine model.
According to Santosh Iyer, the Managing Director and CEO of Mercedes India, India will be the sole country producing the GLS Maybach outside of the United States. The localization efforts are expected to reduce the vehicle's price by approximately Rs 40 lakh, bringing it down to nearly Rs 2.75 crore. Iyer did not provide any comments regarding the planned investment at the Chakan plant in Pune aimed at enhancing localization.
Manufacturing or assembling vehicles locally can significantly lower customs duties, thus reducing car prices. For instance, the imported GLS Maybach faces a 110% tariff, which would decrease to approximately 20% if produced domestically. In 2025, the company sold 19,007 vehicles, with high-end models making up 25% of these sales.