Indo-EU FTA: A Boon for India's Automotive Innovation

The India-EU Free Trade Agreement is set to drive technological innovation in India's automotive industry, according to Mercedes-Benz India MD and CEO Santosh Iyer. While celebrating the pact as a historic achievement, Iyer noted no price reductions for Mercedes-Benz vehicles are expected. The impact on India's economy could be substantial.

The India-EU Free Trade Agreement (FTA) is poised to significantly influence technological innovation within the Indian automotive sector, according to Santosh Iyer, MD and CEO of Mercedes-Benz India. While celebrating the pact as a historic milestone, Iyer dismissed any expectations of immediate price reductions for the company's vehicles.

Iyer emphasized that the Indo-EU FTA underscores the growing significance of the Indian economy on the global stage. The agreement is anticipated to promote sustainable growth and future mobility innovations within the sector, although the final impact remains contingent on the agreement's specifics.

Despite the agreement's promising outlook, Iyer noted that over 90% of Mercedes-Benz India's sales derive from locally manufactured models, leading to minimal expectations of price cuts. Additionally, the rupee's depreciation against the euro continues to challenge European carmakers in India, potentially offsetting any benefits from reduced import duties.

(With inputs from agencies.)