Mercedes-Benz India has made a big step towards improving its electric vehicle portfolio by beginning local manufacture of its top-of-the-line electric SUV, the EQS 580 4MATIC, at its Pune facility. This move is meant to boost the company’s electric vehicle portfolio. By manufacturing the luxury electric SUV, India became the first country outside of the United States to do so. This achievement represents a significant milestone for Mercedes-Benz’s global electric vehicle strategy as well as its commitment to the ‘Make in India’ initiative.
On 16 September, the EQS SUV 580 was introduced to the market with an introductory price of INR 1.41 crore. It features a driving range of 809 km and comes with a high-voltage battery warranty that is valid for 10 years.
Santosh Iyer, the Managing Director and Chief Executive Officer of Mercedes-Benz India, expressed his pride in the introduction of the locally made EQS SUV 580 4MATIC, which further solidifies India’s position as a major market in the company’s global electric vehicle roadmap. With this significant achievement, the firm is able to demonstrate its manufacturing skills and establish its dedication to assisting India in its journey towards electrification.
In the first half of the year, the company’s Battery Electric Vehicle (BEV) penetration is currently at 5% of total sales. The introduction of this vehicle is a component of Mercedes-Benz’s strong push towards electrification, which is in line with the company’s aim for a future that is entirely electric and environmentally friendly. The production of the EQS luxury sedan was followed by the production of the EQS 580 4MATIC, which is the second BEV to be made locally. Over five hundred EQS sedans have been sold by the company in India so far.
To this point, the company has indicated that it will be investing a total of INR 200 crore in 2024 for the purpose of manufacturing operations, the launch of new product lines, and the digitisation of manufacturing processes. Up till the year 2024, the total investments made by the company amount to INR 3000 crore.
With six luxury BEVs already in the market, Mercedes-Benz will have the most extensive BEV range in India. It is because of India’s rising desire for SUVs, which presently account for 55% of the luxury car market, that the company has made the decision to construct the EQS SUV locally. According to Iyer, this is the pinnacle of technology, luxury, and space, at the same time that it prioritises sustainability.
Pune Being a Manufacturing Hub for the Company
Both battery electric cars (BEVs) and vehicles powered by internal combustion engines (ICE) are currently manufactured at the Pune plant. The growth rate of the corporation was 60% in the first quarter of 2024.
The EQS SUV 580 4MATIC local production highlights the flexibility of producing internal combustion engine (ICE) and battery electric vehicle (BEV) vehicles under one roof, as well as managing a complex supply chain process, complex battery fitment process, sophisticated MBUX Hyperscreen installation, and other complex processes.
According to Vyankatesh Kulkarni, the executive director and head of operations for Mercedes-Benz India, the company is the only luxury original equipment manufacturer (OEM) in India to produce two battery electric vehicles from its production site alone.
The EQA, EQB, EQE, and EQS, as well as the ultra-luxurious Mercedes-Maybach EQS 680 SUV, are the six vehicles that are included in Mercedes-Benz India’s battery electric vehicle (BEV) portfolio, according to Kulkarni, who also notes that the company has achieved great progress in the field of electrification.
As a result of the company’s BEV sales increasing by 60% during the first half of 2024, the country accounted for 5% of the company’s total sales. There have already been over 500 units of the EQS 580 sedan sold in the local market, and there have been confirmed bookings for more than 80 Electric G-Class cars prior to the launch of the vehicle.
Right now, India’s car market is the fourth biggest globally. Nevertheless, the luxury segment only makes up 2% of the total because of the one-of-a-kind characteristics of the Indian market and the hefty import duties, which can reach 100%. Consequently, this makes it harder for luxury foreign automakers to expand. This number has even fallen below 1% as of 2021.
According to Zigwheels.com, sales of imported vehicles fell to 19,781 units in 2021, a 51% decrease from 2020, and the pandemic only made matters worse.
But with electrification, these automakers may be able to forge a stronger foothold in the enormous Indian market. But first, let’s take a step back and examine the current situation to better understand how these car companies intend to establish a presence in this region of Asia.
Expert market research has just reported that India used luxury car market size is poised for robust growth, with a projected Compound Annual Growth Rate (CAGR) of 16.30% from 2024 to 2032. Rising demand for luxury vehicles, especially for subscription services and rentals, and a larger pool of youthful buyers are the main factors fueling this expansion.
The market’s expansion can be attributed, in large part, to the enthusiasm of the younger generation for high-end automobiles. Furthermore, more and more people are choosing subscription services and renting cars, which opens the market to more people and makes luxury vehicles more accessible. There will be plenty of chances and thrills for industry participants and enthusiasts as these elements combine to take the used luxury car market in India to new heights in the coming years.
When purchased brand new, high-end vehicles from prestigious manufacturers like Mercedes-Benz, BMW, Audi, and Jaguar can cost a pretty penny. But as time goes on and these cars lose value, more people in the used automobile market can afford to buy them. People in India, particularly those living in cities, now have more money to spend how they like. A desire to buy luxury cars, even secondhand ones, has become aspirational as a result of this. People are better informed about the benefits of purchasing used luxury cars because of the proliferation of digital platforms and simple access to information. They are aware of the possibility of substantial reductions that do not sacrifice performance or quality. Certified pre-owned programs are now available in India from several luxury car manufacturers. By enforcing high-quality standards and providing extended warranties, these programs give purchasers peace of mind when purchasing used cars.
Market Ratio of Pre-owned to New Cars Across India From Financial Year 2016 to 2022, With Estimate of 2027
Exciting Times Await!
According to Balbir Singh Dhillon, CEO of Audi India, rising demand for luxury cars might cause sales in the country to surpass 50,000 units in 2024, a first for the country. Last year, the domestic luxury car market as a whole saw record sales of almost 48,500 units, an increase of 28 percent from the previous year.
The luxury car market in India has been relatively stable over the last decade, with yearly sales of less than 2% of all passenger vehicles. Retail sales for Audi vehicles in India increased by 89% in 2023, reaching 7,931 units, up from 4,187 units the previous year.
Similarly, with sales of 17,408 units, up 10% from 15,822 units in 2022, Mercedes-Benz India had its biggest year ever in India.
In 2017, a combined total of 14,172 BMW and MINI vehicles were sold in India by BMW.
Growth of Mini-Metro Networks and Portfolios
Launches of new models have long piqued consumer interest, with luxury automakers typically setting the tone. The year 2024 will see the release of more than 24–30 new models. Luxury automakers are expanding into new markets with new models, and with production volumes on the rise, even the plants may have to expand.
Mercedes-Benz may consider expanding its operations if it reaches its full capacity of 20,000 vehicles, which is expected to happen within the next year or two. Mercedes’ total investment has increased rapidly from 2,000 crore rupees four or five years ago to 3,000 crore rupees now. In ten additional locations this year—Jammu, Kanpur, Udaipur, Amritsar, Patna, Valsad, Agra, Kannur, and Kottayam—Mercedes intends to open twenty new workshops. The manufacturer’s goal is to ensure that all customers can access a service center within a two-hour trip.
In addition to releasing new models, BMW Group India is expanding the number of touchpoints with customers. Vikram Pawah, President & CEO at BMW Group India informed that by the end of FY26, the number of BMW and Mini contact points will increase from 63 in 35 locations to 80 in 43 cities. With the return of the Q3 SUV, Audi India has returned to a 15-model portfolio after restructuring its product line-up and powertrains in preparation for 2020. The corporation is slowly making its way back to its prior height, and the brand is reaching a bigger audience as a result.
There is every reason to expect the luxury car market in India to continue growing. This area is poised to have an even greater increase in sales volumes as young entrepreneurs venture into new ways to expand their firms. Maintaining a seamless supply chain, resolving semiconductor shortages, navigating geopolitical problems, etc. are just a few of the obstacles that these high-end firms must overcome. Once they are resolved promptly, this sector will no longer have any obstacles in expanding its reach in India.
In the 21st century, the top brands prefer to get the topmost actor, celebrity, or sportsperson to become their brand ambassador. May it be Hollywood or Bollywood the popular actors are always in high demand as they help the company grow by reaching out to the mass by becoming the face of the brand. George Clooney is one of the most reputable Hollywood actors, film directors, producers, screenwriters, and philanthropists in the advertising world.
The actor has won prestigious awards like Golden Globe Awards three times, Academy Awards two times, and was even the recipient of the AFI Lifetime Achievement Award in 2018. George Clooney made his acting debut on Television in 1978 and got recognition with ER (1994 – 1999), along with the appreciation of receiving two Emmy Award nominations.
He is known for his exceptional performances in movies such as Syriana, Argo, Ocean’s Eleven, The Monuments Men, Leatherheads, Up in the Air, Michael Clayton, The Descendants, etc. George Clooney was also tagged under the 100 most influential people in the world by the Times list for the period of three years (2006-2009). According to Forbes, George Clooney is one of the wealthiest Hollywood celebrities and was the highest-paid actor in 2018.
Besides his remarkable acting career, George Clooney is also a successful businessman as he sold his tequila company named Casamigos to Diageo (a liquor giant) at the cost of $1 billion in 2018. The esteemed actor has also recorded of heavily investing in real estate properties from across the globe. He is also a political, social, and economic activist and made the United Nations Messenger of Peace in 2008.
The A-list Hollywood actor has an estimated net worth of $550 million(2021). While he was paid over $40 million for a brand endorsement deal with Nespresso in 2017. Some of the brands endorsed by George Clooney are Nespresso, Casamigos, DnB, Omaze, Martini, Warburtons, Mercedes Benz, and Toyota.
George Clooney is highly known for his endorsements due to multiple reasons. His endorsements are quickly hyped by the media for varied purposes such as criticizing them or for appraising the choice. Another key point is that George Clooney is known to get 90% of his income by means of endorsements. He was also included in the list of the highest-paid actor on Earth in 2018 despite not releasing a single movie for that period. Some of the best-known endorsements of George Clooney are given below.
Nespresso
Nespresso is one of the most successful operating units of Nestle Group with its headquarters based in Lausanne, Switzerland. The company is known for its premium machines that brew coffee from coffee capsules. Nespresso machines are designed to help its customers make a premium cup of coffee in an easier and fast manner. Nespresso also sells its premium coffee capsules that are made from the best quality coffee and manufactured in three Switzerland factories.
As of 2011, the company’s annual sales were over 3 billion Swiss francs. George Clooney was signed as a Nespresso brand ambassador in 2006, since then the actor is known to receive $40 million from Nespresso endorsement deals. The acclaimed actors have been the face of the brand since 2006 and have appeared in many multimedia ad campaigns that have garnered popularity and helped the brand grow in the European and US market.
George Clooney has paired up with other actors like John Malkovich, Danny DeVito, and Matt Damon to endorse Nespresso in commercials. George Clooney was also noted to serve as a member of the Nespresso Sustainability Advisory Board. His role was to collaborate on ideas and solutions for improving the lives and futures of coffee farmers.
Casamigos
Casamigos is a popular tequila company that was co-founded by George Clooney and his friends Rande Gerber and Mike Meldman and launched in 2013. The tequila brand was said to be accidentally founded as the friends only wanted to make a tequila according to their tastes and for their personal use, with no intention of taking the company public.
The company, however, became incredibly popular and was acquired by Diageo (the world’s largest spirits company) for a whopping $1 billion in 2017. The purchase was equivalent to Diageo paying almost $500 a bottle. George Clooney went on a US road trip to promote the launch of the Casamigos Tequila.
The actor also appeared in an ad commercial and the supermodel Cindy Crawford, Rande Gerber’s wife. The funny commercial showcases Clooney waking up next to Crawford with a puzzled expression. A bottle of Casamigos Tequila on the nightstand behind him ends with a message saying “Please drink responsibly”.
Omaze is an upcoming for-profit fundraising company that partners with charities in fundraising events. The company was founded by Ryan Cummins and Matthew Pohlson in 2012, with its headquarters based in Los Angeles, California. The events organized by the company is combined with prizes, such as material goods, property, or celebrity experiences, and come along with one grand prize and several lesser prizes.
The urge to win prizes actually led them to the path of making donations. Omaze has so far, raised over $130 million for more than 350 charities including UNICEF, Julia’s House, Make A Wish foundation, etc. The company partnered with George and his wife Amal Clooney to raise funds and awareness for the Clooney Foundation for Justice, which fights for justice and accountability for human rights abuses.
The winner of the event was said to get a once-in-a-lifetime opportunity to have lunch with George and Amal Clooney at their home in Lake Como. The actor is featured in a funny commercial where he talks about how his wife’s resume is far more impressive than his and how people would rather hang out with her than “just an actor”.
DnB Bank
DnB is stated as Norway’s largest financial service group that has its headquarters in Oslo. The DNB Bank Group is the largest unit of the DNB Group, which works to provide financial services to the corporate, retail, securities markets, and the public sector. So far, the company is known to have more than 2.3 million retail customers and over 200,000 corporate clients, with 61 branch offices across the world.
DnB is considerd as one of the major name in energy sector internationally along with the tag of being worlds foremost shipping bank. In 2012, The company signed George Clooney as its brand endorser. The actor was featured in a two-part multimedia ad campaign. The comedic ad showcases a random woman who has woken up one morning married to George Clooney. DnB NOR commercial tries to illustrate that our dreams can come true irrespective of their base, however planning and being cautious of the finances is in our best interest.
Martini is one of the top brands of Italian drinks, which was started by Clemente Michel, Carlo Re, Carlo Agnelli, and Eligio Baudino in 1847. The vermouth brand belongs to Martini & Rossi which is an Italian multinational alcoholic beverage company, the company also makes another popular sparkling wine called Asti and French vermouth named Noilly Prat.
Martini and Rossi are behind the name of the American martini and gin cocktail drink. Since the beginning, the company has marketed its products aggressively, and created some memorable TV advertising and sponsoring events under its Martini logo.
George Clooney became the endorser of Martini in 2006 and since then has appeared in some of its ad campaigns. The visuals of advertisements showcase the actor swapping his luxury boat and a beautiful woman for the Bacardi cocktail drink. In another martini ad, George can be seen denied entry while his stock of Martini is welcomed without him.
Warburtons
Warburtons is one of the leading England-based baking companies that was founded by Thomas Warburton in 1876. As of 2018, the company is known to have over 12 bakeries, 14 depots, and more than 4,500 employees across the UK. Warburtons is one of the most popular bread sellers in the UK, as it holds over 15% of the market share in London. The company signed George Clooney as its endorser in 2021, the company has also made commercials with actors like Robert De Niro and Sylvester Stallone.
The multimedia ad campaign showcases George Clooney attempting to field a Zoom call with a disinterested Jonathan Warburton (head of Warburton) who would rather eat a delicious slice of buttered toast than have a conversation with the star. Commenting on the same commercial, Clooney added, “It’s not every day that your call is turned down for a slice of toast, but needless to say I had a lot of fun filming this spot.”
Conclusion
George Clooney is known not only for being the greatest actor in Hollywood but also for his business acumen. George Clooney is also a political, social, and economic activity and has even started the Clooney Foundation for justice which advocates against human rights abuses around the world. This is why the actor is one of the most influential figures in Hollywood and any brand around the world would love to have him as their brand ambassador.
FAQs
Who is George Clooney?
George Clooney is a popular Hollywood actor, film director, producer, screenwriter, and philanthropist.
What is the net worth of George Clooney?
George Clooney has an estimated net worth of $550 million in 2021.
What are the brands endorsed by George Clooney?
Some of the brands endorsed by George Clooney are Nespresso, Casamigos, DnB, Omaze, Martini, Mercedes Benz, Warburtons, and Toyota, among others.
How much does George Clooney charge for Brand endorsements?
George Clooney was once paid over $40 million for brand endorsement deals with Nespresso.
Tesla is an electric vehicle producer headquartered in California. It was founded by Martin Eberhard and Mike Tarpenning in 2004. The company was named as a tribute to electrical engineer Nikola Tesla. In February 2004, via a US$6.5 million investment, X.com co-founder Elon Musk became the largest shareholder of the company and its chairman. He has served as CEO since 2008. The company manufactured its first car in 2009, named The roadster. It was followed by new and efficient models ever since.
Tesla supercharger is a fast charging vehicle technology made by Tesla. It is a 480-volt direct current fast charger for all their electric cars. The Supercharger network was introduced on September 24, 2012, with six Supercharger stations. As of February 18, 2021, Tesla operates over 23,277 Superchargers in over 2,564 stations worldwide[2] (an average of 9 chargers per station).
Tesla launched the “Destination Charging location” network in 2014. Equipping chargers to hotels, restaurants, shopping malls and resorts to provide on-site vehicle charging at twice the power of default home charging.
Tesla broke ground on the Gigafactory in June 2014 outside Sparks, Nevada. The name Gigafactory comes from the word ‘Giga,’ the unit of measurement representing “billions.” The Gigafactory is being built in phases so that Tesla can begin manufacturing immediately inside the finished sections and continue to expand thereafter.
Tesla opened its first Gigafactory in Shanghai, China. It was impressively built in less than Six months. It was also the first automobile factory fully owned by outside authority in China.
Gigafactory (Image via Tesla)
Watch Below Governor Brian Sandoval and Elon Musk, Chairman and CEO of Tesla Motors, announced that Nevada has been selected as the official site for the Tesla Gigafactory. Tesla will build the world’s largest and most advanced battery factory in Nevada which means nearly one hundred billion dollars in economic impact to the Silver State over the next twenty years.
Tesla India Motors And Energy Private Limited is a subsidiary of Tesla Inc. The company was registered on 8 January 2021 in Bengaluru, Karnataka. It has officially registered with the Registrar of Companies in India at its Bengaluru office. Transport Minister Nitin Gadkari has confirmed the entry of Tesla in India
Tesla should “make cars in India, sell in India and export from India,” and rely on local suppliers, Gadkari said at an India Today Conclave
Though there has been no formal announcement by the company on its India plans yet. Whatever be the plans the company is asked to manufacture and then sell in India and not to sell cars “Made in China”.
The Future is Electric, this is not a future sentence anymore. We are already witnessing companies manufacturing and people moving to Electric vehicles. Several top performers in this field in India are pointed below.
Tata Electric
Tata EVs | Tata Electric Vehicles
Tata is an already established and trusted brand in India. In order to boost EV future plans the company plans to invest $1 Billion Tata Motors electric vehicle subsidiary, Tata Electric. Tata Motors recently struck a deal to raise Rs 7,500 crore from TPG Rise Climate and Abu Dhabi’s ADQ. This is a major fundraising by an Indian carmaker to boost the clean transportation segment. For now the company has introduced two EVs in market:
Hyundai Motor Company is a South Korean multinational automotive manufacturer headquartered in Seoul, South Korea. They also hold a dominant share in Indian car segment through their operations in India. They launched their first EV, The Kona Electric to tap the newly formed demand in this sector.
The automotive giant is not left behind in the market of EVs. It has already started to manufacture automobiles that are powered by electric means.
Examples Include:
eVerito
eSupro
e2oPlus and more
Morrison Garages India
Morrison Garages
British automotive founded by Cecil Kimber in the 1920s, and M.G. Car Company Limited.The Indian subsidiary was set up in the year 2017 and began its sales and manufacturing operations in 2019. Now, it is a celebrated car brand in India. Last year it came up with the MG, ZS EV. The MG ZS EV is not just India’s first pure Electric Internet SUV, but also a catalyst for change. The EV is powered by i-Smart EV 2.0. Style, substance, performance.
Mercedes Benz
The car brand that is synonymous with luxury, came up with an all electric vehicle in oct 2020. The Mercedes Benz EQC Electric, with the same elegant style and the same robust lux that is always expected from the automobile manufacturer.
Mercedes EV Launch
Tesla’s India Specific Challenges
Charging Infrastructure
The one necessity of electric vehicles is its charging demands and it’s a new concept to the world. So generally charging Infrastructure becomes a little problem for developing countries. In a developing country like India, The charging Infrastructure that is needed to jump on the EV trend is not ready. There is a lot of space left to fill in this domain. The Government of India is trying and boosting the process to develop the infra as soon as possible.
Cost
Another crucial thing in an EV is the battery, The lithium Ion battery. Every EV is powered by a battery that has to be imported in India. In case of four wheelers, Most EVs in India provide a range of 200 to 250 km and cost between Rs 14-20 lakhs which does not give a cost advantage compared to higher range cars in the same price range.
Lack of Renewable Energy
In India most of the electricity is made by coal burning. If we see EVs running in our markets then electricity demand will shoot up. Which will moreover push the companies to produce more and more electricity. Which will cancel out the motive of reducing the greenhouse gas emission because coal burning itself emits GHGs.
Tesla has plans of getting in the Indian market and most probably it will enter. But the company will see many aforementioned edges and challenges that will ruffle their feathers, Like the Charging Infra, GHG emissions and Cost control issues. Moreover, seeing the current face of the government, and watching the relations with China, it will oppose selling “Made in China” cars in Indian Markets. Either Tesla has to start manufacturing in Indian Borders or have to find other ways to tackle the obstacle. In a nutshell, we can say that If the company has to expand and plant roots in our subcontinent, then it has to be agile and innovate in accordance to the demands here. It will have to improvise a bit.
FAQs
Is Tesla allowed in India?
Tesla has got approval for four of its variants by the Indian government.
Which Indian company ties with Tesla?
Sona Comstar Ltd., Sandhar Technologies Ltd. and Bharat Forge Ltd. are among some Indian companies already supplying components to Tesla.
Does Tesla manufacture only electric cars?
Tesla builds not only all-electric vehicles but also manufactures scalable clean energy generation and storage products.
Nitin Konde
