Mercedes-Benz launches S 450e plug-in hybrid in India at Rs 2.2 crore, flags tax-driven demand gap

Mercedes-Benz India debuts its first PHEV, the S 450e, with 115 km electric range and Rs 2.2 crore starting price. CEO Santosh Iyer says hybrid uptake (8.05% share) is held back by limited model availability and a steep GST gap—5% on EVs versus 18-40% on hybrids—even as the segment outsells pure EVs (6.63%).

— Source publishedMon, 15 Jun, 2026, 19:22 IST·First seen Mon, 15 Jun, 2026, 19:33 IST·Source Forbes India

What happened

Mercedes-Benz India launched its first plug-in hybrid, the S 450e, priced from Rs 2.2 crore. CEO Santosh Iyer says hybrid demand in India is constrained by

Key facts

  • 115 km electric range
  • 250 kmph top speed
  • Rs 2.2 crore
  • Rs 2.38 crore
  • EV share 6.63%
  • Hybrid share 8.05%
  • GST 5% EV
  • GST 18-40% hybrid

Why this matters

Mercedes-Benz's first India PHEV opens a wedge for OEM partnerships and lobbying coalitions targeting hybrid tax reform, with the S 450e as the anchor SKU.