Mercedes-Benz India CEO on Tesla’s entry: ‘We’re insulated from the noise’

Speaking on the sidelines of the unveiling of the latest Mercedes Maybach series model, Santosh Iyer, CEO, Mercedes Benz India told Fortune India's Aayush Ailawadi, that the company does not anticipate much impact with Tesla coming in or with tariffs going up.

“Look at Mercedes Benz, there's a lot of action happening in the entry EV space and we all share in the total portfolio, not only EVs, in the total luxury car market, we have a share of hardly 10% in the entry segment. Our 90% of volumes come from core luxury and the top end, which is 25% of the ultraluxury segment. We are, in that sense, insulated from all the noise happening,” says Iyer.

Yet, Iyer says “new players are always welcome.” After all he believes this helps drive the electrification agenda much faster.

Similarly, Iyer is least afraid of the tariffs and duties given almost 90% of the cars are being produced locally in India thus, “there will be no change on Mercedes-Benz prices,” Iyer adds.

Iyer says however, that the company likes open borders and FTA or global trade, because their business too is based on individual prosperity and economic wealth.

“For that to happen, free trade will only accelerate (prosperity), because goods just don't come in. They also, (offer) an opportunity to go to other countries,” says Iyer.

Iyer says he remains a “big fan” of the auto industry knowing the competency and cost competencies the industry has in India.

“Even the Indian industries or OEMs and auto components will gain significantly when the borders are opened up,” adds Iyer.