The country head of Mercedes-Benz told the media on Friday that a complete trade agreement between India and the European Union might open the door for the automaker to increase production there and maybe turn India into an export hub.
In order to complete negotiations for a free trade deal by the end of 2023, the EU and India reopened discussions in June. Due to a lack of progress on topics like EU requests for broader access to Indian markets for its cars, talks that had started in 2007 were put on hold in 2013.
In response to a question regarding the German company’s export plans, Martin Schwenk stated in an interview that a trade agreement that places India in a competitive situation or provides it a competitive advantage over other markets where Mercedes produces automobiles would “certainly assist.”
“One possible method would be to manufacture one automobile in India and distribute it to all markets. But if, for instance, we are prohibited from exporting to the EU without incurring penalties, we will be unable to compete with our manufacturer in Hungary “explained he.
The EQS 580, a version of Mercedes’ premium S-Class sedan, was introduced by the automaker on Friday in India. Mercedes has ambitions to perhaps produce more eco-friendly vehicles there in the future.
“We intend to totally electrify the portfolio and become an electric factory here within the next 8–10 years. Building the capacity today with the idea of increasing the numbers as needed is the plan “He continued, noting that exporting was not the current plan.
A yearly volume of 150,000 to 200,000 cars would be necessary to create a model in one site, according to Schwenk.
Despite being the top premium automobile manufacturer in India, Mercedes only sold 11,242 vehicles in 2021. It sold 15,500 units at its peak in 2018.
India is mostly a small- and low-cost auto market, with yearly sales of roughly three million cars totaling 1% for luxury brands. The market for luxury EVs is considerably smaller and less developed, with the majority of vehicles now being imported at hefty tariffs.
The EQS will cost 15.5 million rupees ($190,564) and has a verified range of 857 kilometers (532.5 miles) on a single charge.
