Mercedes-Benz has experienced tremendous success in India in recent years and is now looking to invest in infrastructure and introduce the right products to take advantage of the country’s growth story, according to Ola Kallenius, the chairman of the board of management at Mercedes Benz AG.
Kallenius, who visited India earlier this year to assess operations and meet with policymakers and industry leaders, said, “We had a very productive meeting in India. There is a sense that the 21st century belongs to India. There’s a buzz and a pulse. The country is on the move… We’re prepared. If the Indian market accelerates even more, we’ll be there.”
In 2022, Mercedes-Benz sold 15,822 vehicles in India, a 41% increase compared to the previous year and the company’s highest annual sales in the country. With nearly 50% market share in the luxury vehicle segment, the German automaker is on track to achieve record sales for the second consecutive year in 2023.
Kallenius believes the Indian market has the potential for significant long-term growth, supported by its demographic dividend and progressive policies promoting electrification. Although Mercedes-Benz currently relies on a high-tech internal combustion portfolio, Kallenius stated that, “the future is going to be electric in India as well.” The company already sells four electric car models in India and is investing in charging infrastructure to provide customers with convenient charging stations.
Globally, Mercedes-Benz plans to introduce two all-electric vehicles on the Mercedes Modular Architecture, with the first one, the Concept CLA, entering commercial production in 2025 and being simultaneously launched in India.
Kallenius also emphasized the importance of India in Mercedes-Benz’s research and development, with its largest R&D setup outside of Germany located in Bengaluru. The Indian team of over 5,000 engineers is working on global development projects and leading initiatives on data security in the automotive industry’s transition towards electric, connected, and autonomous technologies.
Compared to ageing mature economies in the West, Kallenius sees promise in India due to its available human capital. However, he highlighted the need for more growth-oriented labor policies in Germany to remain competitive with countries like India, China, and the United States.
Kallenius also stressed the need for a structured immigration policy in Western countries to attract young talent from around the world. He believes that regions with limited domestic growth potential should become destinations that offer economic opportunities for individuals and their families.
(This report is from Munich at the invitation of Mercedes-Benz AG)
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