Santosh Iyer, CEO of Mercedes Benz India, expressed confidence in the company’s ability to weather the impact of Tesla’s entry into the Indian market and the rising tariffs. According to Iyer, the company’s focus on the luxury and ultraluxury segments, which account for 90% of their volumes, will shield them from the noise in the entry EV space. He emphasized that new players are welcome, as they can help accelerate the electrification agenda. Iyer is also unfazed by the tariffs, as almost 90% of the cars are produced locally in India, making it unlikely to have an impact on prices.
Iyer believes that open borders and free trade will be beneficial for the industry, as it will lead to economic prosperity and wealth creation. He is a “big fan” of the auto industry, recognizing the competency and cost competencies in India. He believes that the opening up of borders will benefit not only foreign players but also Indian industries and OEMs, leading to significant gains for the auto components sector. Overall, Iyer remains confident in Mercedes Benz’s position in the Indian market and is optimistic about the future of the industry.