On 19 January 2026 the German Association of the Automotive Industry- VDA and the Indo-German Chamber of Commerce (IGCC) invited their members to an “VDA IGCC Automotive Roundtable India” at New Delhi. The roundtable brought together senior representatives from the German and Indian automotive and business communities to assess the current state of India’s automotive industry, bilateral trade relations, and the geopolitical challenges affecting members of the Verband der Automobilindustrie (VDA) and IGCC.
The event opened with welcome remarks by VDA President Hildegard Müller and the German Ambassador to India, H.E. Dr. Philipp Ackermann, who both underlined the strategic importance of India as a key partner for Germany’s automotive sector amid shifting global dynamics.
In his keynote, Santosh Iyer, Board Member of IGCC and Managing Director & CEO of Mercedes-Benz India, gave an OEM perspective on India and highlighted India’s growth potential, regulatory developments, and the importance of innovation and resilient supply chains. He emphasized the role of Indo-German collaboration in driving sustainable mobility and technological transformation.
Jupiter Kalra from MAHLE Holding (India) Private Limited highlighted the strong bilateral trade relationship in the automotive sector from a supplier perspective. By combining Germany’s advanced technology with India’s manufacturing scale, the two countries can drive the next decade of global competitiveness. The upcoming EU-India Free Trade Agreement (FTA) is expected to create additional leverage and strengthen the global supplier base further. Promoting German technology in India can help lead the next phase of growth and innovation in the country’s automotive industry.
An update from Berlin was provided by Angela Mans, Head of Foreign Trade at VDA, who outlined current geopolitical challenges and opportunities with a particular focus on India. She addressed trade policy shifts, supply chain diversification, and the implications of EU-India relations for the automotive sector.
During the interactive “Tour de Table,” participants shared highlights and challenges for 2025, reflecting on their business operations in India and identifying key takeaways for the upcoming meeting of the “Indo-German Working Group on Automotive”. The discussion underscored themes such as regulatory framework, market access, and the importance of deeper bilateral cooperation.
The roundtable concluded with an outlook on EU-India trade and business relations by Sonia Prashar, Secretary General of the Federation of European Business in India (FEBI). She provided an update on the EU-India-FTA negotiations and emphasized the strategic significance of strengthening EU-India ties in light of global geopolitical shifts and highlighted opportunities for enhanced cooperation, investment, and policy dialogue.
Overall, the roundtable reaffirmed India’s growing relevance for the German automotive industry and the shared commitment to navigating geopolitical uncertainties through closer Indo-German and EU-India collaboration.
The successful conclusion of negotiations on the trade agreement between the European Union and India shortly after the roundtable is much more than a milestone in trade policy – it is a strong signal of partnership, reliability and joint capacity for action at a time of increasing global uncertainty. For both economic areas, this agreement opens up new prospects for growth, investment and technological cooperation. For Europe's export-oriented industries in particular – and especially for the German automotive industry – the agreement marks an important step towards improved market access in an increasingly challenging global environment. The agreed gradual reduction of tariffs on vehicles to 10 per cent within an initial quota, as well as the complete exemption from customs duties for car parts within five to ten years, create predictable and fair competitive conditions. They reflect a balanced approach that takes India's economic development into account while at the same time creating new momentum for bilateral trade.
India is not only one of the world's most dynamic growth markets today, but also already the third-largest single market for passenger cars worldwide. The country is increasingly developing into a key production location and innovation hub – also for international companies. The gradual removal of trade barriers is strengthening this development, promoting mutual investment and deepening industrial cooperation between European and Indian partners.
India is an important partner and future market for the German automotive industry, particularly with regard to the goals of diversification, bilateral trade, cooperation in the field of electromobility and digitalisation. German manufacturers and suppliers are already represented in India with more than 1,400 locations and production facilities. The VDA therefore supports cooperation with India through the Indo-German Working Group on Automotive between the German and Indian governments, as well as close cooperation with the Indian partner associations ACMA (suppliers) and SIAM (OEMs).
For Europe as a whole, trade agreements such as this one underscore the strategic importance of open markets and rules-based cooperation. A strong, internationally competitive industry forms the basis for employment, prosperity and the ability to successfully tackle global challenges – from the transformation of mobility to climate protection. This agreement is thus exemplary of a new quality of economic partnership between India and the European Union. It invites companies, investors and political decision-makers alike to actively shape the opportunities that arise and to place cooperation on an even broader and more sustainable footing.
The VDA and the IGCC cordially invite you to the IAA TRANSPORTATION in Hannover in September 2026. You are welcome to take part in our IAA India Day, which is tentatively taking place on 16 September 2026.