Mercedes-Benz is broadening the strategic role of its Indian operations, with the country set to take on greater responsibilities in software development, artificial intelligence (AI), and supply chain activity.
Chief technology officer Jörg Burzer told Bloomberg that India would play “a more important role in the future” not just in technology development, but also as a sourcing base.
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The company’s Bengaluru research and development centre – its second largest worldwide – has transitioned from conventional hardware engineering towards software, infotainment, and autonomous-driving technologies, and now employs more than 8,000 engineers.
“We have two big teams”, Burzer said of the India R&D centre, citing work on self-parking technology, infotainment systems, and AI-based programmes to train software for advanced driver-assistance functions.
Across its manufacturing and product development operations, Mercedes is integrating AI through a digital production platform known internally as MO360.
The system supports a range of functions including predictive maintenance, factory management, crash-test simulations, and automated driving development.
Indian engineering teams are contributing to several of those areas, Burzer said.
Rather than relying on manual programming to help vehicles recognise road sign variations across different markets, the company has adopted AI-driven methods that enable its systems to learn directly from observed traffic behaviour.
Mercedes is also trialling humanoid robots built by US startup Apptronik at facilities in Germany and Hungary, with early-stage deployment expected to focus on logistics tasks such as parts handling and preparation within factory environments.
In India, the company operates an assembly plant in Maharashtra, where it produces models including the EQS electric vehicle and the A-Class Limousine.
Mercedes delivered over 19,000 cars in fiscal 2026, retaining its position as the country’s top-selling luxury carmaker, marginally ahead of rival BMW.
However, its share of the luxury segment fell by nearly four percentage points in the fiscal year ended March 2026 compared with the prior year.
Earlier this week, Mercedes launched a refreshed plug-in hybrid version of its flagship S-Class sedan in India, with pricing starting at Rs22m ($233,170).
On electrification, Burzer said EVs were likely to assume a larger role in India as battery range continues to improve, noting that the company’s current generation of electric vehicles is capable of more than 700km per charge, with future models expected to surpass 800km.
The company is continuing to develop electric, hybrid, and combustion-engine vehicles in parallel, reflecting what Burzer described as a flexible approach to powertrains across markets.
