Gia Motors News According to Reuters, the head of the Indian subsidiary of German automaker Mercedes-Benz said the company hopes that the new Indian government can sign more free trade agreements and reduce trade barriers to help boost luxury cars in the Indian market.
Sales.
, Photo source: Mercedes-Benz, when asked what issues Mercedes-Benz hopes the new government will solve when it comes to power, Santosh Iyer, general manager and CEO of Mercedes-Benz India, said,”From the perspective of economic growth, more free trade agreements and reduction of trade barriers are still something we very much want to see.
In the medium to long term, we hope that the Indian luxury car market will grow.
In India, our growth is very strong.
“, Luxury car sales in India have been soaring as India’s affluent class expands and spends more on non-essential items.
Mercedes-Benz is the highest-selling luxury car manufacturer in the Indian market, with sales in India reaching a new high in 2023.
Last year, Mercedes-Benz sold 17,408 vehicles in India, a year-on-year increase of 10%.
The company has been operating in India for 30 years and assembles cars in the western Indian city of Pune.
, However, analysts said the lack of free trade agreements, which allow for more favorable tax regimes between countries, and trade barriers such as high import taxes on cars and parts have made companies reluctant to expand production in India.
For example, a 100% import tax is imposed on complete vehicles priced above US$40,000.
, In the past 10 years, the Indian government has finalized free trade agreements with Australia, the United Arab Emirates and others, but missed the deadline to sign a trade agreement with the UK, and an agreement with the EU is also under negotiation.
In 2022, Mercedes-Benz once said that a comprehensive trade agreement between India and the European Union could help the company produce more cars in India and potentially export them from India.
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