There exists a robust and growing economic relationship between Germany and India, with German companies increasingly considering India a key market and investment destination. This shift shows in good trade levels and steady foreign money put into India.
In 2024, Indo-German trade in bilateral terms was a staggering US$33.40 billion, with services trade being a record US$17.03 billion, reflecting their diversification of economic ties. Germany is currently the 9th largest foreign direct investor in India, cumulative FDI having stood at US$15.11 billion from April 2000 to March 2025, and what can be seen is that this trend is only picking up speed. A recent KPMG and Indo-German Chamber of Commerce “German Indian Business Outlook 2025” report highlighted the reality that 68% of German companies now have India among their top five most relevant markets, with 79% planning additional investment up to 2030.
Such firm determination is an open acknowledgment of India’s strategic value in the global strategy of most of the leading German companies, eager to take advantage of its emerging market and highly skilled manpower. In this article, we will explore some of the top German companies in India and their specializations. So, let’s begin!
Why India Attracts German Businesses: Key Investment Drivers
India is now a steadily more attractive location for German businesses, motivated by a mix of sound economic fundamentals and strategic imperatives. These leading investment drivers are inducing an increasing number of German companies in India to expand their footprint and deepen their engagement.
- Selling More in India: India’s vast and rapidly growing consumer market offers excellent opportunities for German companies to search for new markets and potential expansion.
- Skilled Labor: India possesses an enormous quantity of trained and semi-skilled employees, particularly in engineering and information technology, at affordable costs compared to Western economies.
- Government Support: Initiatives like “Make in India” and “Atmanirbhar Bharat” promote manufacturing and foreign investment, creating a superior business climate.
- Diversification Strategy: Geopolitical shifts and supply chain interference globally have prompted German firms to diversify their businesses away from reliance on a single market, and India is a stable option.
Impact of German Companies on the Indian Economy
German firms in India do more than just put in money. They help a lot in the growth and rise of the nation’s economy. Their work helps many areas, pushing new ideas and making more jobs.
- Employment Creation: German companies in India are major employers, generating a significant number of indirect and direct jobs in manufacturing, services, and R&D activities.
- Technology Transfer: These firms bring top German tech, smart engineering, and good work ways. This helps India get better at making things and being more productive.
- Skill Development: German firms make vocational training and skill development investments, enabling India to upskill its population.
- Manufacturing Boost: German investment in the auto and engineering sectors enhances India’s manufacturing capability and drives the “Make in India” initiative.
- Increased Exports: As production hubs develop in India, some German companies indirectly contribute to India’s export capabilities by placing India into global supply chains.
Key Sectors of German Investment and Collaboration
German companies have made deliberate investments in India in a number of major sectors, taking advantage of India’s strengths and contributing to India’s industrial base. These parts are key to how India grows and match well with what Germany can do in industry.
Automotive Sector
German auto giants have established enormous manufacturing, R&D, and sales hubs, catering to India’s growing need for premium and passenger vehicles.
Examples: Volkswagen Group, Mercedes-Benz India, BMW India
Engineering & Manufacturing
German firms are known for precision engineering and are intensively engaged in machinery, industrial equipment, and innovative factory solutions, boosting India’s industry infrastructure.
Examples: Siemens, Bosch, thyssenkrupp
Chemicals & Pharma
German companies bring advanced chemical processes and pharmaceutical research, assisting in the development of India’s robust chemicals sector as well as the healthcare sector.
Examples: BASF India, Merck Group, Bayer
Logistics & Transportation
As India’s infrastructure is building fast, German firms move to set up more firms there. They help trade and make the flow of goods better.
Examples: DHL Express India, DB Schenker, Rhenus Logistics
Financial Services
German banks and financial institutions offer niche services, catering to corporate clients, trade finance, and contributing to India’s economic system.
Examples: Deutsche Bank, Allianz (through Bajaj Allianz)
Software & IT Services
German tech firms start research spots and push digital work, use AI, and make tech better, using India’s tech minds.
Examples: SAP Labs India, Siemens
Top German Companies Operating in India (Key Players)
A. Automotive Sector
1. Volkswagen Group
- Industry: Automotive
- Headquarters: Wolfsburg, Germany
- Market Share (India): Approximately 1.5-2% (pan-portfolio of brands such as Volkswagen, Skoda, Audi, Porsche), with emphasis on premium and niche segments, with increasing focus on SUVs and local manufacturing.
- Website: https://www.volkswagen-group.com/en
Volkswagen Group, with prominent brands such as Volkswagen, Skoda, Audi, and Porsche, has a significant presence in India, with facilities in Aurangabad and Pune. As one of the leading German Companies in India, the firm is going full throttle for the Indian market with its ‘India 2.0’ plan, with an emphasis on localised production and models aimed at Indian consumers, like a heavy push in the SUV space. It will strive to significantly expand its market share by introducing new models and expanding its sales and service network, including its ID.4 electric SUV, which is being road-tested in India.
- Specialization: Luxury cars, premium cars, SUVs, electric vehicles, passenger cars.
- Presence in India: Manufacturing plants (Pune, Aurangabad), a comprehensive network of dealers, R&D centers, sales and marketing departments of various brands like Skoda Auto, Volkswagen India Private Limited.
2. Mercedes-Benz
- Industry: Automotive (Luxury Cars)
- Headquarters: Stuttgart, Germany
- Market Share (India): Leads the luxury car segment with a market share of more than 40%, being the top-selling luxury car brand year after year.
- Website: https://www.mercedes-benz.co.in/
Premium automobile market leader Mercedes-Benz India was one of the first German automobile players in India to initiate local production in 1994. It manufactures a vast amount of luxury sedans and SUVs, like the EQS 580 electric vehicle, at its state-of-the-art Chakan plant in Pune. As one of the prominent manufacturing companies in India, The firm is ongoing with integrating the latest global models and technology in India with a goal to enhance its leadership in premium mobility and adoption of electric vehicles.
- Specialization: Luxury sedans, SUVs, performance vehicles (AMG), electric vehicles (EQ range).
- Presence in India: Manufacturing plant (Pune), most extensive network of luxury car dealers, Mercedes-Benz Research and Development India (MBRDI) labs in Bengaluru and Pune, exclusive sales and service.
3. BMW India
- Industry: Automotive (Luxury Cars)
- Headquarters: Munich, Germany
- Market Share (India): Good player in the luxury car segment, consistently rivaling Mercedes-Benz and growing its presence of electric vehicles.
- Website: https://www.bmw.in/en/
BMW India boasts a strong presence in the luxury car segment, with its Chennai manufacturing facility producing an array of BMW and Mini models, recording a high degree of localization. As one of the prominent German Companies in India, the company aims to deliver the “Sheer Driving Pleasure” experience to Indian customers through a portfolio of products spanning sedans, SUVs, and high-performance M variants to increasingly expanding lines of electric cars such as the iX and i4. BMW is also investing in customer experience and charging infrastructure.
- Specialization: Luxury sedans, SUVs, sports cars, motorcycles (BMW Motorrad), electric vehicles (BMW i).
- Presence in India: Assembly plant (Chennai), widespread network of dealerships, sales, marketing, and finance services division (BMW Financial Services India), and focus on sustainable manufacturing practices.
B. Engineering & Manufacturing
4. Siemens India
- Industry: Engineering, Manufacturing, Technology (Electrification, Automation, Digitalization)
- Headquarters: Munich, Germany
- Market Share (India): Market leader in industrial automation, power generation, innovative infrastructure, and mobility solutions.
- Website: https://www.siemens.com/
Siemens India is a power to be counted upon in the country’s industrial economy, providing pioneering solutions in electrification, automation, and digitalization. As one of the leading German Companies in India, it boasts a humongous production facility footprint (e.g., Aurangabad, Goa, Kalwa, Nashik, Puducherry) and is deeply involved in big-ticket infrastructure development projects, e.g., railways (e.g., metro projects) and smart cities. Siemens continues to be proactively investing in domestic manufacturing and R&D for fuelling India’s growth ambitions for Industry 4.0 and green infrastructure.
- Specialization: Industrial drives and automation, intelligent infrastructure solutions, power generation and transmission, mobility solutions (railway, road traffic management), healthcare technology (Siemens Healthineers).
- Presence in India: Multiple manufacturing sites, multiple R&D centers (e.g., Bengaluru, Gurugram, Chennai), extensive sales and services network, strong focus on digitalization and green technologies.
5. Bosch India
- Industry: Engineering, Automotive Components, Industrial Technology, Consumer Goods
- Headquarters: Gerlingen, Germany
- Market Share (India): Leading supplier of automotive technology, a leadership position in power tools, and home appliances.
- Website: https://www.bosch.in/
Bosch India is a diversified technology and services company with the largest development center outside Germany, located in Bengaluru, and a worldwide engineering talent pool for the company. It is a champion in automotive components, offering advanced solutions for conventional and electric vehicles, including fuel injection systems and mobility solutions. In non-automotive, Bosch also has a strong presence in industrial technology, consumer goods (power tools, home appliances), and building technology, innovating constantly for the Indian market.
- Specialization: Automotive parts (drivetrain, chassis, car multimedia), diesel and gasoline systems, industrial technology, power tools, home appliances, security systems, engineering, and business services.
- Presence in India: Several manufacturing units are located in places like Bengaluru, Nashik, and Goa, while extensive R&D facilities are located in places like the Bosch Research and Technology Center in Bengaluru. Sales and Service operations are carried out in all business segments.
6. Thyssenkrupp India
- Industry: Engineering, Industrial Components
- Headquarters: Essen, Germany
- Market Share (India): Dominant player in the elevator and escalator business, but also strong in industrial plant technology and material.
- Website: https://www.thyssenkrupp-uhde.com/india/
Thyssenkrupp India is diversified between segments from industrial components and materials to plant technology (e.g., for fertilizer and petrochemical plants through Thyssenkrupp Uhde India) and elevators. As one of the established German Companies in India, its elevator sector, Thyssenkrupp Elevator (separated and now TK Elevator), is a top mobility solutions provider in India’s urban areas, focusing on maintenance and modernization. The group is actively involved in infrastructure development and industrial undertakings, indicative of its scope of engineering capacities and Indian market focus.
- Specialization: Elevators and escalators, industrial plant technology, automotive components, materials services, and engineering for chemical processes.
- Presence in India: Elevator and escalator manufacturing plants, process plant engineering centers (Mumbai, Pune), sales offices for various business units in India.
C. Chemicals & Pharmaceuticals
7. BASF India
- Industry: Chemicals
- Headquarters: Ludwigshafen, Germany
- Market Share (India): One of the largest Indian chemical companies with market leadership positions in various segments like polyurethanes, care chemicals, and crop protection.
- Website: https://www.india.basf.com/
BASF India is a leading producer of chemicals, plastics, performance products, and crop protection solutions. As one of the key German Companies in India, it serves a wide variety of industries, including automotive, construction, agriculture, and healthcare. BASF is committed to green innovation and green solutions and has heavily invested in R&D for developing pioneering materials and processes tailored to the Indian market, with its main production sites in Dahej, Mangalore (its biggest in South Asia), Thane, and Chennai. It is committed to developing sustainable innovations addressing local challenges.
- Specialization: Petrochemicals, monomers, intermediates, performance products, functional materials & solutions, agricultural solutions (crop protection, seeds).
- Presence in India: Various manufacturing plants (Dahej, Mangalore, Thane, Chennai, Hyderabad), two Research and Development Centers (Mumbai, Mangalore), widespread sales and distribution network across a broad range of chemical segments.
8. Bayer India
- Industry: Pharmaceuticals, Crop Science, Consumer Health
- Headquarters: Leverkusen, Germany
- Market Share (India): Leadership position in pharmaceuticals (e.g., cardiovascular, oncology) and crop science (seeds, crop protection).
- Website: https://www.bayer.in/en/
Bayer India has operations in three primary business segments: Pharmaceuticals, Crop Science, and Consumer Health. As one of the prominent German Companies in India, it is a significant contributor to India’s health sector with groundbreaking drugs and healthcare products for deadly diseases. In agriculture, Bayer provides breakthrough crop protection chemicals and seeds under the Crop Science business and plays a vital role in enhancing agricultural productivity, promoting sustainable agriculture, and improving the living conditions of farmers in India. Vapi is one of their most crucial worldwide manufacturing locations.
- Specialization: Pharmaceutical prescription products (pharmaceuticals), crop protection products (herbicides, insecticides, fungicides), seeds (corn, cotton, vegetables), over-the-counter products (consumer health).
- Presence in India: Various manufacturing centers (e.g., Vapi), limited research & development and crop breeding centers, IT and finance centers of excellence, extensive sales and marketing efforts.
9. Merck India
- Industry: Healthcare, Life Science, Electronics
- Headquarters: Darmstadt, Germany
- Market Share (India): Market leader in life science research solutions, pharma, and specialty chemical solutions for electronics.
- Website: https://www.merckgroup.com/in-en
Merck India is a leading science and technology firm that delivers solutions in Healthcare, Life Science, and Electronics. As one of the innovative German Companies in India, they provide high-quality pharmaceutical research and biotechnology products and services, including laboratory solutions and bioprocessing, and innovative solutions for human health in oncology and fertility. Their electronics business offers specialty chemicals for display and semiconductor manufacturing, being an active participant in India’s growing tech industry and research capabilities.
- Specialization: Lab solutions, bioprocessing, pharmaceuticals (oncology, fertility, general medicine), liquid crystals, effect pigments, semiconductor materials.
- Presence in India: R&D India Hub (Bengaluru) is devoted to healthcare, shared business services centers, manufacturing facilities, and an extensive sales and distribution network across its three business divisions.
D. Logistics & Transportation
10. DHL Express India
- Industry: Logistics, Express Delivery
- Headquarters: Bonn, Germany
- Market Share (India): Leading international express delivery and logistics company with excellent market share in the premium express segment.
- Website: https://www.dhl.com/in-en/home.html
DHL Express India is the undisputed market leader in international express shipping from India to over 220 countries and territories across the world. It offers the complete spectrum of logistic solutions, from air freight, ocean freight, and road haulage to contract logistics, drawing on its vast global network and expertise in customs to provide speedy and reliable deliveries. DHL’s advanced technological innovations and green emphasis are critical to Indian companies that engage in international trade, placing it as a crucial partner in global supply chains.
- Specialization: Global express delivery, air freight, ocean freight, road freight, contract logistics, e-commerce logistics, supply chain solutions.
- Presence in India: DHL boasts an extensive network of service centres, gateways, hubs, and offices in major cities, providing end-to-end logistics solutions throughout the country, supported by over 100,000 Certified International Specialists.
11. DB Schenker India
- Industry: Logistics, Supply Chain Management
- Headquarters: Essen, Germany
- Market Share (India): Integrated logistics and supply chain solution leader with capabilities in freight forwarding and contract logistics.
- Website: https://www.dbschenker.com/global
DB Schenker India provides door-to-door logistics solutions with transportation by land, air freight, sea freight, as well as contract logistics. It has experience in managing intricate supply chains within the automotive, industrial, and consumer goods industries and provides tailor-made solutions for customers with special needs. DB Schenker’s international freight forwarding know-how, coupled with its strong network of offices and warehouses, positions it as a significant business partner for companies operating in the Indian market to facilitate hassle-free transfer of products.
- Specialization: International freight forwarding (air, ocean, ground), integrated logistics, contract logistics, supply chain consulting, customs brokerage, project logistics.
- Presence in India: Far-reaching office, warehouse, and logistics node presence in all the key industrial and commercial hubs, majorly in cities like Mumbai, Pune, Chennai, and Bengaluru.
12. Rhenus Logistics India
- Industry: Supply Chain Management, Logistics
- Headquarters: Holzwickede, Germany
- Market Share (India): Growing contract logistics, freight forwarding, and special services presence, known for custom-made solutions.
- Website: https://www.rhenus.group/in/en/
Rhenus Logistics India boasts a broad portfolio of logistics solutions, from contract logistics, freight forwarding (air, ocean, road), to port logistics. Being a supplier of customized and integrated supply chain solutions, Rhenus grows rapidly in India with a focus on efficiency, digitalization, and innovation. They cater to a broad range of industries, from chemicals to automotive to consumer goods, with end-to-end visibility and optimization of the supply chain.
Specialization: Contract logistics, freight forwarding, customs clearance, warehousing solutions, supply chain management, project logistics.
Presence in India: Multiple branches, warehouses, and logistics parks across strategic locations in India, offering complete and industry-specific logistics services.
E. Financial Services
13. Deutsche Bank India
- Industry: Financial Services, Banking
- Headquarters: Frankfurt am Main, Germany
- Market Share (India): One of the largest foreign banks in India, with a focus on corporate and institutional clients, wealth management, and trade finance.
- Website: https://www.deutschebank.co.in/
Deutsche Bank India is a big group that deals with money stuff. It gives out corporate banking, investment banking, private banking, and helps manage assets. It has a key role in helping trade and money deals between India and Germany and backs many German firms in India. The bank is growing its work and online reach in India, with its big centers in Bengaluru, Jaipur, Mumbai, and Pune, showing its long-term promise and key role in its work across the world.
- Specialization: Corporate banking, investment banking, trade finance, private banking, wealth management, correspondent banking, treasury solutions.
- Presence in India: Offices in 16 cities in India, an IFSC Banking Unit at GIFT City, and more than 22,000 employees as of July 2024 in our different businesses and global capability centers.
14. Allianz Group
- Industry: Financial Institutions, Insurance
- Headquarters: Munich, Germany
- Market Share (India): Dominant market position in life and general insurance businesses through its joint ventures, with top private insurer rankings consistently.
- Website: https://www.allianz.com/en.html
In India, Allianz works through its joint ventures with Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance. These organizations offer a wide assortment of insurance products, from life and health to motor, property, and travel insurance, among others, to meet diverse customer needs. Allianz’s global expertise in risk management and product innovation and Bajaj’s extensive local market understanding and extensive distribution network have made these companies market leaders and strong players in India’s rapidly growing insurance industry, with new business such as reinsurance in the offing.
- Specialization: Life insurance, general insurance (motor, health, home, travel, commercial), asset management (with Allianz Global Investors).
- Presence in India: Substantial network of agents and branches for both life and general insurance businesses throughout the country, serving millions of policyholders.
15. Commerzbank AG
- Industry: Financial Services, Banking
- Headquarters: Frankfurt am Main, Germany
- Market Share (India): Niche player with exclusive emphasis on corporate banking, trade finance, and correspondent banking services to corporate clients.
- Website: https://www.commerzbank.de/group/
Commerzbank AG has an extended history in India, and its business here is focused on offering corporate customers, facilitating trade finance, and correspondent banking services. It is the financial bridge for Indo-German trading companies and offers customized financial services to facilitate cross-border investments and transactions. Although its presence is smaller than in larger retail banks, its focused strategy provides critical backing to various German firms doing business in India and Indian firms doing business with Germany.
- Specialization: Corporate banking, trade finance, correspondent banking, capital market services, corporate foreign exchange services.
- Presence in India: Branch offices at major financial hubs like Mumbai, catering to corporate and institutional clients, facilitating international business activities.
F. Software & IT Services
16. SAP India
- Industry: Enterprise Software, IT Services
- Headquarters: Walldorf, Germany
- Market Share (India): ERP software and business solutions market leader with a commanding market share in that category.
- Website: https://www.sap.com/india/index.html
SAP India is one of the significant key operation centers for SAP around the world, and one of SAP’s biggest R&D campuses, SAP Labs India, outside of Germany, with offices in Bengaluru, Gurgaon, Pune, Mumbai, and Hyderabad. It provides end-to-end enterprise software solutions, like ERP, CRM, and analytics, to Indian businesses across a wide range, enabling their digital transformation journeys. SAP is heavily invested in developing India-oriented solutions to keep up with the country’s unique market needs and strongly increasing its India employee base and campus, reflecting its intention to leverage Indian talent.
- Specialization: ERP solutions, cloud solutions, customer relationship management (CRM), supply chain management, analytics, Industry 4.0 solutions, and human capital management.
- Presence in India: Substantial R&D and innovation centers (SAP Labs India in Bengaluru, Gurgaon, Pune, Mumbai, Hyderabad), extensive customer base in numerous industries, robust partner ecosystem, sales and support offices.
17. T-Systems India
- Industry: Telecommunications, IT Services
- Headquarters: Frankfurt am Main, Germany
- Market Share (India): Growing IT consulting, cloud services, and digital transformation for large enterprises.
- Website: https://www.t-systems.com/in/en
T-Systems India, being the Indian subsidiary of Deutsche Telekom, delivers end-to-end IT solutions and services like cloud computing, cyber protection, and digital transformation consulting. It leverages India’s wealth of IT talent and its Global Delivery Centers based in Pune and Bengaluru to service local as well as international clients while focusing on delivering robust, secure, and resilient digital infrastructure solutions. The firm plays a significant role in helping businesses get the most out of their IT environment and speed up their digital transformation.
- Specialization: Cloud services, cybersecurity, digital transformation, IoT solutions, IT consulting, network services, managed services, SAP consulting.
- Presence in India: Global Delivery Centers in Bengaluru and Pune, sales offices, providing IT services and solutions to customers across a range of industries, including automotive, manufacturing, and telecommunication.
18. DATEV India
- Industry: Software for Tax Consultants, Auditors, and Lawyers
- Headquarters: Nuremberg, Germany
- Market Share (India): Niche player offering IT solutions mainly for its parent organization’s internal processes, tapping Indian IT capabilities for use in world product development.
- Website: https://www.datev.com/
DATEV India supports its parent company by providing software development and IT solutions for its specialized software products used by German tax consultants, auditors, and lawyers, and in other European countries. While serving mainly the internal business and supporting the global product development of DATEV’s secure and robust accounting and tax software, its presence is a reflection of the growing practice of German IT companies leveraging Indian IT expertise for global product and service delivery.
- Specialization: Tax, accounting, and law professions software development; IT services and support for internal DATEV group operations.
- Presence in India: Pune development center, providing global software solutions and IT infrastructure setup for the DATEV Group.
Challenges & Opportunities for German Businesses in India (2025 Outlook)
Though India presents a promising environment, German companies in India also face particular challenges, with significant opportunities as they traverse the dynamic Indian market through 2025 and beyond. The extent to which these are addressed will decide long-term success.
- Bureaucracy and Regulatory Barriers: Unblocking complex bureaucratic processes and altering regulatory frameworks can be slow and vexing for German businesses.
- Infrastructure Gaps: While the infrastructure level has seen a considerable improvement, a few regions are still suffering from infrastructure bottlenecks, particularly in logistics and connectivity, which hinder operational efficiency.
- Intense Competition: Indian competition is very fierce with such a powerful local player and other global competitors, which demands differentiation by German companies.
- Talent Acquisition and Retention: While India possesses a talent pool at an unprecedented level, acquiring specialized skills proves difficult in some sectors where talent acquisition is a priority.
- Environmental Issues: Issues like pollution of the air in major cities and the general environmental impact are becoming matters of concern for German companies contemplating long-term investments.
On the contrary, the opportunities are boundless and fascinating, including:
- Digitalization Drive: India’s rapid digitalization across industries offers enormous opportunities for German companies with Industry 4.0, AI, and IoT solution expertise.
- “Make in India” Initiative: The government’s push towards local manufacturing opens up scope for German companies to establish production hubs and become part of regional value chains.
- Expanding Middle Class: The Growing Indian middle class’s purchasing power fuels demand for good-quality products and services, where German brands are strong.
- Infrastructure Development: Vast ongoing and future infrastructure development in transportation, energy, and smart cities creates significant demand for German engineering and technology.
- Strategic Diversification: India is a key component of the diversification strategy of German companies on a global level, reducing reliance on other volatile markets and also making them robust.
Conclusion
The bilateral relationship between Germany and India will continue to expand, with German companies further realizing the strategic importance of India. From automobiles to engineering, chemicals, and information technology, German companies in India are making valuable contributions to the economy in terms of investments, job creation, and transfer of technology.
While issues such as bureaucratic bottlenecks and infrastructural growth persist, the opportunities agitated by India’s expanding market, skilled workforce, and digitalization push render the nation a sheer partner.
FAQs
How many German companies are in India today?
There are over 2,000 German companies in India as of June 2025.
What is German FDI in India?
German FDI in India during April 2000-March 2025 stands at US$15.11 billion.
Which Indian city has the highest number of German companies?
Bengaluru and Pune are the biggest hubs of German companies, particularly in the IT, automotive, and engineering sectors.
Are German enterprises in India focusing on R&D?
Yes, the majority of German enterprises are investing heavily in R&D centers in India, attracting local talent for innovation.
What are the significant challenges for German businesses in India?
Significant challenges include bureaucratic red tape, infrastructural deficits, extremely competitive market conditions, and poaching of talent.