The brown colour caravan has been built on 1017 bus chassis of Bharat Benz.
Iyer, 46, is from Thrissur and currently works as Vice President, Sales & Marketing and would be the first Indian to lead Mercedes-Benz India operations.
Canada-based RM Sotheby's announced that it has auctioned off a 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupe, earlier this month, for 135 million euros, or about $143 million, reports CNBC.
The billionaire wants to display the 1955 model Mercedes Benz in Thiruvananthapuram for public viewing.
The Karnataka-registered car bearing the registration plate “CAN 42” is now parked at the sprawling Kowdiar Palace.
The government order was issued by the General Administration Department on Wednesday.
The file related to this has come up before Chief Minister Pinarayi Vijayan and the new vehicle is to cost Rs 85 lakhs.
The VISION EQXX, dubbed the most-efficient Mercedes-Benz ever built, will have energy consumption of less than 10 kilowatt hours.
The top-selling luxury carmaker in India already offers imported models of its EQC electric sport utility vehicle.
PM Modi was first spotted with the new car at Hyderabad House in Delhi while welcoming Russian President Vladimir Putin.