Mercedes-Benz Exported One Batch of Made-in-India GLE SUVs to Europe

In the financial year 2023, Mercedes-Benz India exported its one batch of Made-in-Chakan SUV to Europe. The news comes at a time when the Indian government is prioritizing signing a Free Trade Agreement with Europe and the UK and incentivizing the imports of electric vehicles into the Indian market to fast-track the entry of Tesla, one of the largest EV manufacturers.

According to sources, Mercedes-Benz India is utilizing its Chakan, Pune facility with over 85%-90%, reaching 20,000 units annually. The automaker has worked three shifts over the last few quarters to cater to the increasing demands for Mercedes cars in India and foreign markets.

This India facility has proven itself to be the high-quality production base globally of the German automaker. The export of Made-in-India Mercedes-Benz SUVs highlights that the numbers can increase further if the Indian government successfully initiates the FTA agreement with the West.

According to the FY2023 financial filed by Mercedes-Benz India with the Ministry of Corporate Affairs, the automaker received the order for its BR167 LHD vehicles from the European market. These vehicles were manufactured using the existing production lines in the body shop, paint shop, and assembly line.

The sources indicate that the exported vehicles are Mercedes-Benz GLE SUVs. While the exact figures for export were not mentioned, the existing facility lines were adapted to complete the order and ensure timely delivery, showcasing the larger batch production.

It is not the first time the German automaker has leveraged its Indian assembly plant to export its vehicles to global markets. In 2018, Mercedes-Benz India shipped the GLC SUV to North America.

Impact of Free Trade Agreement on India’s Vehicle Exports

If the FTA is signed with Europe or the UK, India-based manufacturing facilities can offer cost-effective and high-quality vehicles in international markets. It will not only reduce the manufacturing cost of the world’s leading automakers, like Mercedes-Benz India in this case, but will also create several job opportunities, ultimately boosting the Indian economy.

Despite being the flagship manufacturing facility of Mercedes-Benz, the India facility also has the Global Purchasing Office, sourcing critical parts for international manufacturing bases with an attractive cost structure.