Mercedes-Benz has announced that it will continue to invest in India, regardless of the outcome of the ongoing India-EU free trade agreement (FTA) negotiations. According to Mathias Geisen, Member of the Board of Management, Mercedes-Benz Group AG, India is a “priority and growth market” for the company. Geisen stated that none of the company’s plans have been put on hold, despite the uncertainty surrounding the FTA negotiations.
In 2024, Mercedes-Benz sold a record 19,565 units in India, solidifying its position as the leader in the country’s luxury car market. The company plans to continue bolstering its local production and has already updated its internal combustion engines to EU 7 standards. Geisen also confirmed that Mercedes has no plans to discontinue diesel powertrains.
The FTA talks between India and the EU are in advanced stages, with two crucial rounds scheduled for September and October. However, key sticking points remain on rules of origin, market access, and duties on wine and dairy products. Despite these challenges, Mercedes-Benz remains committed to investing in India and addressing the market with its products.
Geisen noted that competition in India is intensifying, with other OEMs increasing investments in completely knocked-down (CKD) production. However, he expressed confidence in Mercedes-Benz’s ability to respond to varying regional demand, thanks to its flexible production strategy. The company’s approach to electric vehicles (EVs) is also flexible, allowing it to adapt to slower EV sales globally.
Mercedes-Benz’s commitment to India is significant, given the country’s growing importance as a luxury car market. With its plans to continue investing in local production and addressing the market with its products, the company is well-positioned to maintain its leadership position in India’s luxury car market. As the FTA negotiations continue, Mercedes-Benz’s decision to invest in India, regardless of the outcome, demonstrates its confidence in the country’s potential for growth and development.