The government’s new scheme to support the manufacturing of electric cars in India is expected to open the door for more global automakers to enter the market, according to Santosh Iyer, CEO and Managing Director of Mercedes-Benz India, reported The Economic Times.
Speaking to PTI on Friday after launching two new high-performance vehicles, the AMG GT 63 4MATIC+ and the AMG GT 63 PRO 4MATIC+ Coupe, Iyer described the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) as a “forward-looking initiative” by the Ministry of Heavy Industries. The two models are priced at ₹3 crore and ₹3.65 crore (ex-showroom), respectively.
“This scheme is mainly designed to attract new companies. We’ve been in India for 30 years and have already invested ₹3,000 crore in our Chakan plant near Pune. We are already making two electric cars here even before this scheme was announced,” Iyer said. “For us, it’s business as usual, but SPMEPCI will encourage new players to invest in India’s electric vehicle journey.”
Under the scheme, companies that invest ₹4,150 crore in setting up local production will be allowed to import up to 8,000 electric vehicles at a reduced import tax of 15%, far lower than the current rate of 70% to 100%.
Iyer also addressed concerns about global supply chain disruptions and the availability of rare earth magnets, which are used in electric vehicles. He noted that Mercedes-Benz has not faced any issues in India so far, thanks to the company’s strong global support system.
Speaking about the launch of the two new AMG models, Iyer said the performance cars show the brand’s continued commitment to Indian car enthusiasts. “The AMG GT range represents top-level engineering, powerful performance, and a deep emotional connection. Our customers in India have truly embraced the AMG legacy,” he said.
