Exclusive: ‘There is India in Every Single Mercedes,’ Says Ola Källenius

Mercedes-Benz’s largest R&D operation outside Germany has become integral to global vehicle development, with capabilities spanning mechanical engineering, powertrains, electronics and software.

04 Nov 2026 | 1 Views | By Ketan Thakkar & Hormazd Sorabjee

India will have a role in every future Mercedes-Benz, chairman Ola Källenius said, underscoring the country’s engineering importance to the German luxury carmaker beyond its domestic vehicle business.

“I cannot see any Mercedes being developed without India being involved in it,” Källenius told Autocar Professional in an exclusive interview. “There is India in every single Mercedes.”

Källenius, chairman of the Board of Management of Mercedes-Benz Group AG, was speaking during a board visit marking 30 years of Mercedes-Benz Research and Development India, or MBRDI, and ahead of the new GLC EV launch in Pune.

He described India as the company’s second-largest research and development location worldwide, after Germany, “by a wide margin”.

Established in 1996, MBRDI employs more than 8,500 professionals across Bengaluru and Pune. Its responsibilities include digital product development, component design, simulation, embedded systems, telematics and IT engineering.

The breadth of work gives India responsibilities across vehicle programmes, extending its contribution well beyond developing products for local buyers.

“Now we have developed, I would say, a full 360-degree engineering capability at this facility,” Källenius said, listing mechanical engineering, electrical engineering, powertrain engineering and software engineering.

He said the Indian operation works within an integrated global development organisation.

“It’s not like Germany is doing something and then passes the ball, and then somebody else does something, and then maybe the ball comes back. Now it’s a fully integrated R&D global network.”

As previously reported by Autocar Professional, MBRDI’s responsibilities have included contributions to the Mercedes-Benz Operating System, software for the Drive Pilot automated driving system and the MBUX user interface. Indian teams have also worked on vehicle electronics, infotainment and connected services.

That engineering presence gives India a standing within Mercedes-Benz that extends beyond its share of global vehicle sales. Work undertaken in Bengaluru and Pune contributes to cars developed for customers across international markets.

Källenius said access to talent had been central to the decision to establish the operation in India. The team’s approach to difficult engineering problems has helped it take on greater responsibility.

“From the word go, when we started here back in 1996, it’s access to talent, engineering skill, intelligence, but it’s also about the mindset,” he said.

“The team here has an entrepreneurial mindset. If you throw them a task, a difficult task, they would never say, oh my goodness, they will always say, we will find a way.”

During his visit, Källenius reviewed projects ranging from powertrain refinement to physical artificial intelligence for manufacturing and quantum computing.

“We had a physical AI use case for manufacturing. We were looking at quantum computing,” he said.

He also referred to work with an Indian technology company exploring quantum computing, without identifying the partner or detailing the application.

The research effort extends into academia. MBRDI has also signed a five-year agreement with IIT Delhi covering quantum technologies, future materials, neuromorphic engineering and electric mobility. An initial project focuses on quantum sensors and battery systems.

India’s engineering contribution also reaches Mercedes’ Formula 1 programme. Källenius said a team in Bengaluru supports development of the racing car, although he did not specify its size or responsibilities.

“They’re developing the Formula 1 car. So India is also in Formula 1.”

The assignments reflect the capabilities Mercedes-Benz has built in the country over three decades, as vehicle development increasingly brings together mechanical systems, electronics and software.

“MBRDI is crucial for Mercedes-Benz future,” Källenius said.

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