As the global shift toward sustainability accelerates, automotive leaders are reimagining mobility with a deep focus on environmental responsibility. Mercedes-Benz has been at the forefront of this transformation, integrating cutting-edge design, advanced materials, and climate-positive engineering to drive meaningful change. From pioneering sustainably produced leather and innovative leather-free alternatives, using premium upholstery fabrics made from 100% recycled PET bottles to incorporating many other high-performance recycled materials, the company is redefining luxury with a commitment to sustainability.
In this exclusive interview with TheCSRUniverse, Shweta Pandey, Vice President – Legal and Compliance at Mercedes-Benz Research and Development India (MBRDI), sheds light on the brand’s sustainability-driven innovations, the role of AI and data in optimizing production processes, and their unique initiatives like the Sustainability Garage. She also delves into the company’s advancements in battery circularity, the challenges and opportunities of India’s green mobility landscape, and the collaborative efforts shaping the future of sustainable transportation.
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Q. Can you share some key examples of how design innovation and climate-positive engineering have helped in your journey towards achieving higher levels of sustainability? Also, how are you leveraging data and AI in the process?
A. Mercedes-Benz is redefining the future of sustainable mobility by embedding design innovation and climate-positive engineering at every stage of product development. Sustainability is a fundamental pillar of our approach. Through our “Design for Environment” approach, we systematically reduce CO₂ emissions and resource consumption from the earliest stages of vehicle design, ensuring that every innovation contributes to a lower environmental footprint.
Data and AI play a transformative role in accelerating this vision. By leveraging digital twins of our factories, we are optimising production processes, enhancing efficiency, and minimising waste. This innovative use of AI is complemented by our commitment to using more sustainable materials, with a target of incorporating 40% recycled content in all vehicles by 2030.
Mercedes-Benz has achieved net carbon-neutral production since 2022 and aims to transition to 100% renewable energy by 2039. Additionally, we offer green charging options, ensuring that all electricity used for vehicle charging is sourced from renewable energy. These efforts reflect continued dedication to sustainability, combining technology, sustainable materials, and renewable energy in an integrated approach towards creating a cleaner, more efficient future.
Q. Charging infrastructure and battery disposal are key concerns in the EV space. Are there ongoing innovations at MBRDI focused on better battery disposal/recycling, extending battery life or developing alternative, more sustainable energy storage solutions?
A. At Mercedes-Benz, we take a holistic approach to the circularity of battery systems, addressing three core areas: circular design, value retention and closing the material loop. Through the “Design for Circularity” approach, sustainability is integrated into the entire battery technology value chain from the outset. At the eCampus in Stuttgart-Untertürkheim, which opened in 2024, circular thinking flows into the development of new battery cells. Battery production for electric Mercedes-Benz vehicles is net carbon neutral. Local battery production is a key factor for the success of our sustainable business strategy.
In 2024, we further strengthened our leadership in battery sustainability by launching Europe’s first battery recycling plant in Kuppenheim, Germany, achieving a 96% recovery rate for critical materials such as lithium, nickel, and cobalt. This facility plays a key role in reducing the environmental impact of battery production by enabling the closed-loop recycling of materials, minimising the need for virgin resources. We are also working toward a circular economy for battery materials, with over 90% of materials such as lithium and cobalt being recovered through recycling, reducing the need for new mining operations.
Beyond recycling, we are redefining battery lifecycle management. Reconditioned batteries are offered as spare parts for all electric vehicles, extending their usability and reducing waste. Through Mercedes-Benz Energy, we have also established a business model for large-scale stationary storage solutions, repurposing batteries to stabilise grids powered by renewable energy. Looking ahead, we are actively exploring next-generation energy storage solutions, including solid-state batteries, which promise enhanced efficiency and reduced reliance on critical raw materials.
Q. Could you take us through the Sustainability Garage initiative- what are the specific objectives behind this initiative and how has it progressed over the past year?
A. At Mercedes-Benz, sustainability means permanently creating value for all stakeholder groups: for customers, employees, and investors as well as for our business partners, and society as a whole.
Launched by Mercedes-Benz Research and Development India (MBRDI) in 2023, Sustainability Garage – A Mercedes-Benz Initiative is a unique platform for diverse stakeholder groups to collaborate and champion sustainability goals. It is designed to enable research, create interactive spaces for immersive engagement, and promote social innovation projects in climate, environment, and sustainable mobility.
The first Sustainability Garage was set up at Prayoga Institute of Education Research with the aim of creating a platform for collaboration between industry and academia to drive innovation. It is equipped with state-of-the-art facilities and serves as a hub for multidisciplinary research, focusing on developing eco-friendly materials with diverse applications to benefit society. Since its inception, there have been significant advances in research and development of sustainable natural rubber materials. The Garage at Prayoga has also focused on awareness building and knowledge transfer to students. Over 150 undergraduate students from six universities across Karnataka participated in workshops and research projects conducted as part of the Garage.
The results we witnessed at Prayoga energised the expansion of the initiative to include two new Centres of Excellence in collaboration with The Energy and Resources Institute (TERI) and T-Hub.
Q. Can you elaborate on the specific focus areas and near-term plans for both these centres?
A. The first Centre of Excellence focuses on Charging Infrastructure and has been set up in partnership with TERI to focus on a 2-year course development and industry training project aimed at enhancing the charging ecosystem in India. As part of this collaboration, a specialised content and training module on the maintenance of charging infrastructure is being developed to upskill CPOs (Charging Point Operators). This pilot training and certification course also leverages the industry and start-up ecosystem across metro cities in India.
The other Centre of Excellence set up at T-Hub focuses on students and social enterprises with an entrepreneurial idea on the themes of sustainable mobility and environmental sustainability. The 12-week accelerator program is designed to empower early-stage social enterprises in the climate tech space. Through personalised mentorship, strategic resources, and intensive workshops, participants are equipped to refine their ideas and scale their impact. Focusing on groundbreaking solutions, the program addresses the urgent need for sustainable technologies. It will culminate in a pitch event, offering startups the opportunity to secure funding and drive meaningful change in the climate tech sector.
Q. MBDRI is the largest R&D centre for Mercedes-Benz outside Germany. What strategies have proved to be most successful for you in nurturing and utilizing Indian talent over the years?
A. Our success in nurturing Indian talent stems from our human-centric approach focused on continuous learning and creating an environment where innovation thrives. By prioritising technical excellence alongside purpose-driven work, we have built a culture that consistently delivers world-class results. Central to our success is India's rapidly growing digital talent pool, which brings expertise in emerging technologies and positions India as a global hub for top talent.
Through targeted upskilling programs and mentorship initiatives, we are committed to developing local talent into global automotive experts. Today, our Indian teams lead critical global projects in digital transformation, autonomous driving, and connected car technologies.
Q. With India rapidly urbanizing and electrifying, what unique opportunities and challenges does the Indian market present for MBRDI in the green mobility space?
A. India's urbanisation and push towards electrification present unique opportunities for innovation in the green mobility space. At MBRDI, we are committed to Mercedes-Benz's Ambition 2039 which is aimed at achieving net carbon neutrality across the entire value chain by 2039. The diverse Indian landscape, from varying climate zones to distinct usage patterns, serves as an ideal testing ground for developing robust and adaptable green technologies.
Our engineers are actively working on solutions that address specific local challenges - from battery technology optimised for Indian conditions to charging solutions that align with urban infrastructure development. These real-world insights from the Indian market are proving invaluable in developing sustainable mobility solutions that can be scaled globally.
Q. What are the major collaborations that MBDRI has entered into to advance its mission in India? Are there any new partnerships on the horizon that you would like to share with us?
A. MBRDI has established several strategic collaborations that reflect our commitment to shaping the future of sustainable mobility in India. Our recent partnership with BITS Pilani through a five-year Master Research Agreement demonstrates our focus on advanced technology research, particularly in areas such as generative AI, electric mobility, and software development. This collaboration combines our industry expertise with academic excellence to drive innovation and nurture India's technology talent pool.
We are also actively working to transform urban mobility through initiatives such as our partnership with Jana Urban Space Foundation to develop the '15-Minute Neighbourhoods' concept. This collaboration addresses sustainable urban planning challenges by creating guidelines for neighbourhoods where most amenities are accessible within a 15-minute walk or cycle ride.
Additionally, through the 'Enroute: A Mobility-as-a-Service Challenge,' we have partnered with WRI India and Villgro to enable innovative public transport solutions in Bengaluru. This initiative, supported by Bengaluru Metropolitan Transport Corporation (BMTC) and Bangalore Metro Rail Corporation Limited (BMRCL), focuses on leveraging open data to create seamless mobility solutions for urban commuters. These collaborations exemplify our commitment to combining technological innovation with practical solutions that enhance the quality of life in Indian cities.
Q. What is MBRDI’s long-term vision for green mobility in India? Where do you see the industry in the next decade, and what role will MBRDI play in shaping it?
A. Our long-term vision at MBRDI centres on leading the digital transformation of sustainable mobility. As Mercedes-Benz's largest research and development centre outside Germany, we are uniquely positioned with our comprehensive capabilities in digital mechanical engineering, manufacturing, and powertrain development. Our contribution to groundbreaking projects such as the Vision EQXX, achieving a 1,000 km range through advanced digital modelling, demonstrates this commitment.
Looking ahead, we aim to continue leveraging our digital-first approach and India's tech talent pool to develop environmentally sustainable, socially responsible solutions. Our focus is on creating technologies that not only advance Mercedes-Benz's global sustainability goals but also shape the future of mobility in emerging markets.
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