India-EU FTA to improve access to global models: Mercedes-Benz CEO Santosh Iyer

The India–European Union Free Trade Agreement (FTA) could improve the availability of high-end global luxury models in the Indian market. Mercedes-Benz India said the deal may also help accelerate the introduction of new automotive technologies, even as the company continues to prioritise local production.

Commenting on the agreement, Santosh Iyer, Managing Director and CEO of Mercedes-Benz India, said, “Mercedes-Benz welcomes the India-EU FTA as it will have a positive cascading effect on customer sentiments for the luxury segment, with a boost in overall economic growth." He pointed to specific provisions of the deal that could reshape how premium vehicles and components are sourced over time.

Iyer highlighted that “a gradual tariff reduction on vehicles and fully liberalised automotive parts are strategically important decisions in the FTA for the automotive industry," suggesting that the changes could ease supply-side constraints for luxury carmakers operating in India.

Faster rollout of global products

According to Mercedes-Benz India, the agreement has the potential to improve vehicle allocations for the Indian market and shorten timelines for the introduction of global flagship models. “The FTA opens up new avenues for customers with improved vehicle allocations, better availability of top-end global models for Indian market, faster access to latest technology and creating a stronger luxury car ecosystem," Iyer said.

For Indian buyers, this could mean quicker access to advanced powertrains, digital systems and safety technologies that are often introduced first in European markets, particularly at the higher end of the luxury spectrum.

Strategy unchanged on localisation

While the FTA may support a broader range of imports and parts sourcing, Mercedes-Benz India said it does not signal a shift away from domestic manufacturing. “Mercedes-Benz will, however, continue to value add to customers with local production of world-class models from our manufacturing plant," Iyer said.

The company has consistently positioned India as a key production base for its locally assembled models, even as it supplements the portfolio with select global offerings.

As implementation timelines and detailed provisions of the India–EU FTA become clearer, luxury carmakers such as Mercedes-Benz are expected to assess how the agreement can be leveraged to improve product depth, technology access and supply efficiency in the Indian market.

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