After launching a slew of electric sedans over the last few years, luxury car brands like Mercedes, BMW, Audi, Volvo, Lexus, Jaguar Land Rover (JLR), etc., are now upping their ante on battery-run sports utility vehicles in the medium term. Data shared by global automotive data analysis firm JATO Dynamics show that at least 10 electric SUVs (e-SUVs) are expected to hit Indian roads in the next few years (see data below).
With the addition of SUVs in their EV or electric vehicle line-up, most high-end carmakers foresee 15-25 percent of their overall sales coming from non-ICE or internal combustion engine models.
The rollout game begins
Mercedes Benz, which is hoping to derive a fourth of its total sales from EVs by 2027, is firming up plans to introduce battery-operated SUVs in the next few quarters. Having already introduced the EQS, EQB and EQC e-sedans, the country’s largest luxury carmaker is considering SUV versions of EQA, EQE and EQS to accelerate its electric mobility drive, according to JATO Dynamics. However, Mercedes-Benz India didn't confirm the rollout of any of the above models in the near term.
Lance Bennett, vice president for sales and marketing of the company, stated in an emailed response, "The overwhelming response the EQB and the EQS has received since their debut underlines this strong desire for our luxury BEVs (battery electric vehicles). We will continue to introduce world-class BEVs from our global portfolio this year."
The Indian arm of another German luxury carmaker, Audi, which currently has five electric cars in its portfolio—the e-tron 50, e-tron 55, e-tron Sportback 55, e-tron GT and RS e-tron GT—has officially confirmed that it will be launching the Q8 e-tron in the third quarter of 2023. To be brought in as a completely built-up unit, this will be the company’s first luxury e-SUV in India.
“The response to our electric cars is very encouraging, which makes us believe that electric acceptance in the country will happen much faster than we anticipated,” said Audi India head Balbir Singh Dillion, in response to queries sent by Moneycontrol.
BMW Group, which currently sells e-cars such as the iX, i4, i7 and Mini Electric, is looking to add more such zero-emission models in the coming quarters. While the German luxury carmaker has not officially announced it, JATO Dynamics claims that iX1 (the electric variant of the iX1 (electric variant of X1) and iX3 (the electric variant of the X3) are top contenders for the Indian market this fiscal.
There was no response to a questionnaire sent to the BMW India spokesperson at the time of writing, but Vikram Pawah, president and CEO, BMW Group India, had recently told Moneycontrol that it is working on electric cars across segments and body styles for the Indian market.
Volvo Cars India, which aims to generate 100 percent of its total sales from zero-emission vehicles by 2030, has already announced that it will be bringing its C40 Recharge crossover this calendar year. The Swedish luxury automaker will also be launching the EX90 SUV, which will replace the XC90 ICE SUV globally and is scheduled to go on sale internationally in 2024.
There is also a lot of speculation that JLR and Lexus’ Indian arm will be launching their all-electric Land Rover and UX 300E, respectively, by 2025. However, both the companies have not made any announcements on the same and had not replied to queries sent by Moneycontrol at the time of writing.
Why the high adrenaline on e-SUVs?
It may be recalled that while mass market car manufacturers such as Tata Motors, MG Motor India and Mahindra and Mahinda have already entered this race by introducing Nexon EV (followed by EV Max), ZS EV and XUV400, respectively, premium carmakers such as BMW and Volvo started testing the waters with the iX and XC40 Recharge, respectively, last year.
JATO Dynamics claims that the growing trend of electric luxury vehicles is fuelling the demand for luxury cars across the globe. Additionally, luxury e-SUVs augment the already practical and comfortable body style with vastly lower running costs and an eco-friendly persona, as per the same data intelligence firm.
“OEMs (original equipment manufacturers) who own luxury brands can benefit from the growth of the luxury car market. The luxury car market is expected to gain share. Additionally, margins in the luxury SUV segment are high and have grown. High profitability of luxury electric SUVs is a result of OEMs offering a richer package of features and offering more car per car. The demand growth is driven by factors such as the continued increase of ultra high net-worth individuals and high net-worth individuals,” said Ravi Bhatia, managing director of JATO Dynamics India.
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