Mercedes-Benz Rules Out Price Cuts After India-EU FTA
Mercedes-Benz India has said it does not expect to reduce vehicle prices in the Indian market following the India-European Union free trade agreement. The company clarified that the trade pact will not have an immediate impact on car pricing.
Local Production Limits Impact
Mercedes-Benz India Managing Director and CEO Santosh Iyer said over 90 percent of the company’s cars sold in India are locally assembled. As a result, any reduction in import duties under the trade agreement will have limited relevance for most models currently on sale.
Imported Models Also Unlikely to Get Cheaper
Iyer added that even fully imported models are unlikely to see price reductions due to factors such as currency fluctuations and rising input costs. The weakening of the rupee against the euro continues to offset potential tariff benefits.
Long-Term Industry Benefits Expected
While ruling out near-term price cuts, the company said the trade agreement could benefit the automotive sector in the long run by improving technology access, supply chains and collaboration between Indian and European manufacturers.
