VDA Statement on the German-Indian government consultations

"India is an important central partner and a significant future market for the German automotive industry, both in terms of sales markets and the procurement of supply products and services. The potential is enormous: India is the third largest economy in Asia and is one of the major future markets. It is therefore all the more important that Germany uses the upcoming government consultations to negotiate on an equal footing, further improve bilateral cooperation and remove existing obstacles.

Especially in view of the many geopolitical challenges and shifts, it is important that we continue to diversify - the Indian growth pact offers enormous opportunities for this if Germany and Europe make the right strategic decisions now. With a view to the future of mobility, digital solutions and innovations in the field of AI, it is important to use the opportunities to develop innovative vehicle software on the Indian market.

Talks on an equal footing also include addressing critical issues: For the automotive industry, the existing quality control regulations in India represent a serious barrier to trade, as they lead to significant problems in production. These regulations require a labeling and auditing process that doubles the certification effort. The VDA therefore advocates aligning Indian standards with international norms and simplifying the certification processes.

In addition, a fair and balanced free trade agreement between the EU and India would create stable framework conditions and deepen economic cooperation. It is particularly important to reduce the high Indian import tariffs, which are currently hindering competitiveness and the ramp-up of electric mobility in India. The EU is called upon to conduct pragmatic negotiations here.

The fact is: The Indian market is the world's third largest single market for cars. German automobile manufacturers and suppliers are strongly represented in India with more than 1,400 locations and production facilities. The positive developments in the Indian automobile market underline the existing potential."