Exclusive - Mercedes CEO Says Company Will Continue to Grow and Invest in India; Backs India–EU FTA

Mercedes-Benz is “absolutely convinced” about the scale of its future in India and will continue to grow and invest in the country, group chief executive officer Ola Kallenius said. The comments come amid a landmark India–EU trade deal that could potentially open up the biggest trading zone in the world.

Speaking on the sidelines of the launch of the new Mercedes-Benz S-Class, Kallenius told Autocar India he was “absolutely convinced” that Mercedes-Benz’s future in India would be significantly bigger, reflecting the company’s long-term confidence in the market.

“India is a growth market, so whatever happens, we are going to grow and continue to invest in the country.”

On the potential of localising more and leveraging India as a manufacturing base, the CEO was not specific in his remarks, but added, “We will always adjust to achieve the best equilibrium for the models in terms of what to produce and how,” Kallenius said.

Currently, Mercedes-Benz manufactures select models at its plant in Pune, though the company has not indicated whether additional products could be localised as a result of any future tariff or duty rationalisation under the FTA framework. However, on multiple occasions, the company has shipped batches of products to overseas markets to cater to global needs—underlining the fact that the quality of cars assembled in India is among the best in the world.

Kallenius also welcomed progress on the proposed India–EU Free Trade Agreement, saying he had personally engaged with policymakers involved in the negotiations.

“I had an opportunity to speak to Minister Piyush Goyal and the EU trade secretary, and I want to applaud them for reaching this important deal,” he said, while noting that trade agreements inevitably involve compromises on both sides.

While India remains a relatively modest market in terms of volumes, it plays a bigger strategic role for Mercedes-Benz as its R&D hub in Bengaluru, which is Mercedes-Benz’s largest research and development centre outside Germany, contributing significantly to tech, software, and vehicle development.