The newly entered agreement of India-EU Free Trade Agreement (FTA) will greatly spur technological advancement and long-term development of the Indian automobile industry, as put by Santosh Iyer, Managing Director & CEO of Mercedes-Benz India.
Iyer emphasized that the deal represents the increased importance of the Indian economy in the world arena.
While the FTA is expected to spur advancements in future mobility, Iyer emphasized that the full implications of the agreement will only become clear once the finer details are available. "The FTA is also expected to strongly drive technological innovation and sustainable growth within the Indian automotive sector, with a sharp focus on future mobility," he noted.
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However, Iyer pointed out no immediate price reductions for Mercedes-Benz vehicles in India as a result of the FTA. "With more than 90 per cent of Mercedes-Benz India's sales volume comprising 'Made in India' locally manufactured models, and only around 5 per cent of sales coming via CBU imports from the EU, we do not foresee any price reduction for Mercedes-Benz vehicles from the FTA, in the foreseeable future," he said.
The company will still be based on local production and competitive pricing to provide Indian customers with world-class cars. Iyer also mentioned the issue of the depreciating rupee, which is down by 19 per cent to the euro in 2025, impacting European car manufacturers in India.
Nevertheless, he highlighted the advantages of free trade that reduce the barriers and encourage economic growth, bilateral trade and the creation of jobs in India.
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