Mercedes-Benz India to launch first plug-in hybrid in S-Class by December 2024

Mercedes-Benz India will introduce its first PHEV in the S-Class by December 2024, priced at Rs 2.2-2.3 crore as a CBU import. Despite 40% GST on plug-ins versus 5% on EVs, pricing stays competitive against rivals like the BMW i7 due to a smaller battery. Localisation hinges on demand.

— FiledThu, 30 Apr, 2026, 22:34 IST·First seen Thu, 14 May, 2026, 23:59 IST·Source Forbes India

What happened

Mercedes-Benz India will launch its first plug-in hybrid in the S-Class by December 2024 at Rs 2.2-2.3 crore, imported as CBU. Pricing aligns with EV rivals

Key facts

  • Rs 2.2-2.3 crore S-Class PHEV
  • Rs 2.05 crore BMW i7
  • 5% GST on EVs vs 40% on plug-ins
  • CLA EV from Rs 55 lakh
  • AMG C 63 from Rs 1.9 crore
  • GT Coupe Rs 3.2 crore
  • 120 km electric range

Why this matters

Localisation of the PHEV line is contingent on demand validation, making December's S-Class launch a low-commitment test that could unlock domestic manufacturing partnerships if uptake materializes.

What to watch

  • Q1 2025 booking/delivery numbers for the S-Class PHEV
  • Any GST/tax rationalisation on plug-in hybrids in FY25 budget
  • Competitor PHEV launch announcements within 6 months
  • Mercedes statements on CKD/local assembly plans
  • Luxury EV vs PHEV mix shift in registration data
  • Mercedes positions PHEV as 'best of both' for buyers with charging anxiety in tier-1 cities
  • Dealers bundle home-charger installation and extended warranty to soften the 40% GST premium
  • Watch for BMW/Audi defensive pricing or accelerated PHEV announcements
  • Mercedes signals localisation only if S-Class PHEV bookings clear an internal volume threshold