Mercedes-Benz is preparing to expand its India operations with a strategic plan to export vehicles manufactured at its Pune plant to global markets, Union Minister for Road Transport and Highways, Shri Nitin Gadkari, announced on Wednesday.
Speaking at the Auto Retail Conclave organised by the Federation of Automobile Dealers Associations (FADA), the Minister highlighted the company’s confidence in India’s advanced manufacturing capabilities. “The chairman of Mercedes was telling me (that) they are going to look at increasing the productivity of Mercedes in India… And they want to export Mercedes from here to all over the world,” Gadkari said.
Mercedes-Benz currently assembles a range of cars and SUVs at its state-of-the-art Pune facility, which has an annual capacity of approximately 20,000 units. Over the last three decades, the German luxury carmaker has invested nearly ₹3,000 crore in India, catering exclusively to domestic demand until now.
Reiterating its commitment to India, Mathias Geisen, Member of the Board of Management, Mercedes-Benz Group AG, said in Munich this week, “India is a priority market for us. We haven’t put any plans on hold compared to what we have originally. We will continue with our investment plans, including scaling up local manufacturing.”
The development comes as India and the European Union advance negotiations on a free trade agreement (FTA), which could pave the way for reduced import duties on European cars.
Gadkari further emphasized that Mercedes-Benz is among several leading global automakers strengthening India’s role as a hub for both domestic and international markets. “Some of the top automotive companies of the world are manufacturing in India, not just to cater to local demand but also for exports,” he added.