Luxury Cars

Mercedes says trade deal could make India an export hub

NEW DELHI — A complete commerce deal between India and the European Union may pave the best way for Mercedes-Benz to supply extra automobiles within the South Asian nation, probably making it an export hub, Mercedes’ nation head instructed Reuters on Friday.

In June, the EU and India relaunched talks for a free commerce settlement with the intention of finishing them by the tip of 2023. Talks started in 2007, however have been frozen in 2013 resulting from lack of progress on points together with EU calls for for larger entry to Indian markets for its automobiles.

A commerce deal that places India in a aggressive state of affairs or provides it a bonus over different markets the place Mercedes produces automobiles would “positively assist”, Martin Schwenk stated in an interview, when requested in regards to the German agency’s export plans.

“To supply one automobile out of India for all markets of the world might be a technique. But when we can not, for instance, export to the EU with out penalties then we will be unable to compete in opposition to our manufacturing unit in Hungary,” he stated.

Mercedes on Friday launched its first regionally constructed electrical automobile (EV) in India – the EQS 580, the model’s flagship electrical sedan, with plans to probably construct extra clear automobiles within the nation.

“We’re aiming within the subsequent 8-10 years, to totally electrify the portfolio and be an electrical producer right here. The intention is to construct the potential now and relying on how demand develops … enhance the numbers,” he stated, including the present technique was to not export.

To supply a mannequin in a single location would require an annual quantity of 150,000 to 200,000 automobiles, Schwenk stated.

Though Mercedes is India’s largest luxurious carmaker, it offered simply 11,242 automobiles in 2021. At its peak in 2018, it offered 15,500.

India is basically a small- and low-cost automobile market, during which luxurious fashions make up 1% of whole annual gross sales of about three million automobiles. The luxurious EV market is even smaller and largely untested, with most fashions at present imported at excessive tariffs.

The EQS has a licensed vary of 857 kilometres (532.5 miles) on a single cost and shall be priced at 15.5 million rupees ($190,564).

Reporting by Aditi Shah; Modifying by Mark Potter

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