Mercedes says complete commerce cope with EU might make India an export hub

NEW DELHI, Sept 30 (Reuters) – A complete commerce deal between India and the European Union might pave the best way for Mercedes-Benz (MBGn.DE) to supply extra vehicles within the South Asian nation, doubtlessly making it an export hub, Mercedes’ nation head informed Reuters on Friday.

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

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

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“To supply one automobile out of India for all markets of the world could possibly be a method. But when we can’t, for instance, export to the EU with out penalties then we won’t be able to compete in opposition to our manufacturing unit in Hungary,” he mentioned.

Mercedes on Friday launched its first domestically constructed electrical car (EV) in India – the EQS 580, a variant of its flagship S-Class sedan, with plans to doubtlessly construct extra clear vehicles within the nation.

“We’re aiming within the subsequent 8-10 years, to completely 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 mentioned, 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 vehicles, Schwenk mentioned.

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

India is essentially a small- and low-cost automobile market, during which luxurious fashions make up 1% of complete annual gross sales of about three million vehicles. The posh 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).

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Reporting by Aditi Shah
Enhancing by Mark Potter

Our Requirements: The Thomson Reuters Belief Rules.

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