The Curiously Persistent Narrative of Unlocking New Markets
THE CLAIM: We are, apparently, on the cusp of an EU-India trade agreement that will finally allow German automakers to 'penetrate' the lucrative Indian market, currently hindered by high import duties. This will, naturally, be a boon for Europe's ailing car sector and India's consumers. THE EVIDENCE: The article speaks of negotiations, 'high hopes,' and 'political will.' It cites India's
population of 1.4 billion and a rapidly growing economy. What it conveniently omits, however, is the long, documented history of such agreements. The EU, or its predecessors, has been in the business of 'unlocking' markets for decades. We’re told this is about market access, but the actual data on what constitutes 'market penetration' for high-end German vehicles in a country with a per capita GDP
of around $2,600 (World Bank, 2023) is conspicuously absent. One might wonder why those details aren't front and center. THE CONTRADICTIONS: The 'struggling sector' narrative for German carmakers is curious. While transformation to EVs presents challenges, major German brands collectively reported billions in profits recently. For example, Volkswagen Group reported €17.9 billion in operating
profit in 2023, and Mercedes-Benz recorded €14.5 billion. 'Struggling' seems a relative term, particularly when juxtaposed with the 'needs' of developing nations. Furthermore, the idea that 'high import duties' are the sole barrier ignores India's stated industrial policy goal of boosting domestic manufacturing, epitomized by its 'Make in India' initiative launched in 2014. These duties aren't