Extensive Deal with EU could help India be a global export hub: Mercedes

Mercedes reportedly told Reuters that an extensive deal between India and European Union can open up the opportunity to increase production and exports in the country.

The national head of Mercedes-Benz told Reuters on Friday that a comprehensive trade agreement between India and the European Union might open the door for the German automaker to increase production there and maybe turn it 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."

He said, "To produce one car out of India for all markets of the world could be a strategy. But if we cannot, for example, export to the EU without penalties then we will not be able to compete against our factory in Hungary."

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.

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.