Every car that Mercedes-Benz has sold in India since January this year can run on 25 percent ethanol-blended petrol (E25), according to India MD and CEO Santosh Iyer, as the German carmaker looks to stay ahead of regulation.
This comes months after India transitioned to E20, with that blend being the only fuel available at pumps nationwide from April this year. The rollout created a public uproar, with motorists complaining of E20 reducing mileage and increasing wear and tear of engine-related parts. The government and carmakers have both denied E20 can cause damage, while agreeing there is a 3-5 percent drop in mileage.
Asked why Mercedes-Benz opted to have E25-ready engines as that fuel blend is not standard even in its home market Europe, Iyer said this was done to future-proof the brand.
“You have to be ready for the future. The Mercedes customers expect that we will learn the legislation and upcoming trends. There are a lot of discussions on E25. It may not happen [soon], but we want to offer cars which are compliant.”
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Mercedes cars have been E20-compliant since 2020 even though the mandate only came in 2023.
“One of the reasons we did that was to ensure that if this comes in a couple of years, our customers should not feel short-changed. We were ahead of the curve and we will continue to do that.”
Iyer was speaking to Forbes India after the launch of the Mercedes-AMG E 53, the first sedan in the E-Class portfolio to combine AMG performance with a plug-in hybrid powertrain. It can offer pure electric driving range of over 100 km.
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The Performance edition of the car is priced at Rs 1.45 crore, while the racing edition will be offered at Rs 1.48 crore (ex-showroom).
The car launched in India almost two years after its global unveiling, a lag Iyer attributed to right-hand-drive adaptation, allocation planning and getting the timing right.
This is the second plug-in hybrid from the luxury carmaker in two months. It launched the S-class Plug-in Hybrid Electric Vehicle (PHEV) in June.
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Mass market players BYD, JSW-MG have announced they will launch plug-in hybrids this year, while JSW Motors is also coming with a plug-in hybrid.
Plug-in hybrids, which combine an internal combustion engine with a battery that can be externally charged, are seen as a bridge between ICE cars and EVs. They offer limited electric-only driving that’s fit for daily use while retaining a fuel engine for longer distances.
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Asked if the PHEVs will see some traction this year, Iyer said the swing factor is price parity with combustion engines. “Why should somebody not buy a plug-in hybrid over a combustion engine?” he asked, arguing that once PHEVs are priced in line with ICE models, the decision becomes a “no-brainer”.
He pushed back on the idea that India’s tax structure is an obstacle [plug-ins are taxed at the same GST rate as ICE cars], pointing out that Indian OEMs have long built affordable cars despite high taxes.
On Delhi’s new EV policy, which gives full exemption on road tax and registration fees only to EVs priced at Rs 30 lakh or less, Iyer said he was “surprised”. “It undercuts the stated goal of decarbonisation.”
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Capping EV prices for policy benefits pushes total-cost-of-ownership economics back in favour of combustion cars, he said. “In that sense, a bit surprising,” he said, adding that Mercedes has asked authorities to reconsider the provision.
Iyer also ruled out range-extender technology for Mercedes’ India business, at least for now. The technology—in which a small combustion engine recharges the battery rather than driving the wheels–remains largely confined to the Chinese market, he said, and isn’t part of Mercedes’ global portfolio.
JSW MG Motor India unveiled a platform earlier this month that can accommodate range-extended EVs, along with pure EVs, hybrids and plug-in hybrids.
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