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India is considering a reduction in import duties on certain European cars as part of a potential EU trade deal.
If implemented, the change could lower the cost of importing Mercedes-Benz vehicles into India.
The development would open up new opportunities for Mercedes-Benz Group in a large and growing automotive market.
For investors watching Mercedes-Benz Group (XTRA:MBG), the timing of this policy discussion comes as the stock trades around €57.41. Over the past 5 years, the share price shows a total return of 47.8%, while the 1 year return stands at 6.2%. Over shorter periods, returns over 30 days and year to date are negative, which may make potential new market access in India especially relevant to sentiment.
If India follows through with lower duties on European cars, Mercedes-Benz could see improved pricing flexibility and broader model availability in the country. That kind of access may influence how the group allocates capital, product lines, and local partnerships in Asia over the coming years, and could become an important reference point when investors think about the company’s global footprint.
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XTRA:MBG 1-Year Stock Price Chart
XTRA:MBG 1-Year Stock Price Chart
Why Mercedes-Benz Group could be great value
Quick Assessment
✅ Price vs Analyst Target: At €57.41 versus a €63.45 analyst target, the price is about 10% below consensus.
✅ Simply Wall St Valuation: Shares are described as trading 18.2% below an estimated fair value, which points to an undervalued status.
❌ Recent Momentum: The 30 day return of about 4% suggests recent negative momentum in the share price.
Check out Simply Wall St’s in depth valuation analysis for Mercedes-Benz Group.
Key Considerations
📊 Potential lower import duties in India could support demand for higher end models and give more context to current valuation metrics.
📊 Watch how management comments on India in future updates, especially around pricing, local partnerships and capital allocation to that market.
⚠️ Existing flags around high debt and a weaker profit margin than last year mean any expansion push into India still sits alongside balance sheet and profitability risks.
Dig Deeper
For the full picture including more risks and rewards, check out the complete Mercedes-Benz Group analysis.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.