Mercedes-Benz Research & Development India has expanded its footprint in Bengaluru with a lease of approximately 4,18,000 square feet of office space, reflecting the German automaker’s commitment to India as a vital market and talent hub for the automotive sector.
The company will pay a rent of INR 72 per square foot per month in the first three years of the lease, according to a source with direct knowledge of the deal.
“It leased the space at Brigade Tech Garden in Whitefield for 10 years with a 15% escalation every three years,” said another person who was aware of the transaction.
When contacted, the Brigade Group spokesperson said, “We are unable to comment on the transaction.”
The company also renewed its lease with Embassy Crest in Whitefield from Embassy Property Developments for 60 months at the end of 2023.
Mercedes-Benz Research and Development India is planning to hire over 1,000 engineers in India in the upcoming year, as per market information.
Mercedes-Benz is confident that India will soon become one of its top three foreign markets over the next three years.
This is due to the increasing demand for luxury cars in the country. Currently, India ranks fifth among the 118 countries in Mercedes-Benz’s ‘Region Overseas’ strategy, which excludes markets such as North America, Europe, and China.
In 2023, Mercedes-Benz India achieved its highest ever sales record, selling 17,408 units.
The company has set an ambitious plan to establish itself in the electric vehicle (EV) market. By 2027, it aims to have one in every four vehicles sold in India be electric.
Recently, the carmaker announced that it would introduce 12 new models to the market this year, including three battery electric vehicles.
Karnataka boasts the highest number of international R&D centres in India, including those of tech giants like Google, Microsoft, and Walmart.
The state is also known as a global hub for technology-based industries, with many companies looking to expand and establish their presence in the region.
In the first quarter of 2024, India’s office market kicked off on a strong note, witnessing a remarkable 35% increase in total leasing activity across the top 6 cities when compared to the same period last year.
