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NEW DELHI — A complete commerce deal between India and the European Union may pave the way in which for Mercedes-Benz to supply extra automobiles within the South Asian nation, doubtlessly making it an export hub, Mercedes’ nation head advised Reuters on Friday.
In June, the EU and India relaunched talks for a free commerce settlement with the goal of finishing them by the top of 2023. Talks started in 2007, however have been frozen in 2013 as a consequence of 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 scenario or provides it a bonus over different markets the place Mercedes produces automobiles would “undoubtedly assist”, Martin Schwenk mentioned in an interview, when requested concerning the German agency’s export plans.
“To supply one automotive out of India for all markets of the world might be a technique. But when we can’t, for instance, export to the EU with out penalties then we won’t be able to compete towards our manufacturing unit in Hungary,” he mentioned.
Mercedes on Friday launched its first domestically constructed electrical car (EV) in India – the EQS 580, the model’s flagship electrical sedan, with plans to doubtlessly 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 aptitude now and relying on how demand develops … improve 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 automobiles, Schwenk mentioned.
Though Mercedes is India’s largest luxurious carmaker, it bought simply 11,242 automobiles in 2021. At its peak in 2018, it bought 15,500.
India is basically a small- and low-cost automotive market, during which luxurious fashions make up 1% of complete annual gross sales of about three million automobiles. The luxurious EV market is even smaller and largely untested, with most fashions presently imported at excessive tariffs.
The EQS has a licensed vary of 857 kilometres (532.5 miles) on a single cost and might be priced at 15.5 million rupees ($190,564).
Reporting by Aditi Shah; Enhancing by Mark Potter
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