U.S industries were already in the transfix due to the rise of China as a paramount manufacturing and marketing base, meanwhile, another Asian country has stepped onto the stage of the competition, that country is India.
The GLC compact crossover, which is Mercedes-Benz’s bestselling vehicle, will be imported to the U.S from India’s western plant of manufacturing, reported by Automotive News.
The Ford Motor Co. is joined by German luxury automaker in en routing India as a source of U.S. vehicles. Ford itself started importing its Ecosport subcompact crossover, last year, from Chennai.
However, General Motors have forestalled in their efforts to develop an Indian sales base, giving no indication that it would be exported to the U.S.
The biggest reason behind the sudden import of vehicles all the way from India is due to U.S. – China trade conflicts and disturbed relation due to punitive tariffs imposed on auto parts and vehicles. It is also happened because of the struggling domestic market in India and overcapacity faced by Indian factories.
Mercedes-Benz USA spokesman Rob Moran confirmed last week about the deliveries of Mercedes GLC in the U.S. from next month. The manufacturing of Mercedes GLC will be at automaker’s plant in Pune.
Rob Moran said that SUV GLC is in great demand all over the world. Therefore, Mercedes Benz is using all the capabilities of its network of global production on four continents, which also includes the plant in Pune.
The conception of vehicles importing through India circulated a decade ago when Mahindra & Mahindra was an Indian military vehicle building company, signed a deal to import a kind of rough small diesel pickup to the U.S. via an independent distributor. The import deal crashed due to certain quality issues
Due to this shipping from Mercedes, India’s auto sector will get significant growth opportunities, also the middle-class incomes will rise and consumers will also gravitate from two-wheelers to cars. Exports really can become a fundamental portion of an equation for the automakers with Indian plants.
The shipping cost for GLC’s stateside from Pune is higher than Bremen, however, if compared after overall costing; including labor rates, then the shipping cost will remain lower than any other country.
However, the uncertainty, witnessed by the industry in the U.S. imposed tariffs cannot be denied as well. The threatening tax of 25% on cars that come in the U.S. from European Union, imposed by Trump administration and the trade war tensions between U.S. and China is raising questions on the tariffs to be decided for U.S. – India trade.