After 18 years of negotiations, India and the European Union (EU) finalised a trade deal and announced a day after Republic Day. Leaders from India and the EU announced the agreement during the 16th India-EU Summit.
India-EU Trade deal agreement is expected to be implemented in 2027. Following this deal, the tax on European cars imported into India, such as BMWs, Mercedes-Benz vehicles etc, will be reduced from 110% to 10%.
It is pertinent to mention here that India-EU trade deal significantly lowers import duties on completely built vehicles, bringing the levy down from 110 per cent to 10 per cent. I
Currently, India levies import duties on fully built cars ranging from 70 percent to as high as 110 percent. Under the new India-EU free trade agreement, these peak tariffs are expected to be reduced to around 40 percent in the initial phase.
The changes will not take effect right away, as the agreement is expected to be implemented in phases over the next one to two years, with import tariffs first reduced to 40 percent before being gradually brought down to 10 percent.
According to a newswire, around 2 lakh cars a year could be eligible for concessions under the proposed deal. However, EVs are expected to remain excluded from FTA benefits for the first five years.
Not only this, but India-EU FTA puts a special focus on lowering duties on parts and components, with a plan to phase out these tariffs over the next five to ten years, a move that is expected to make imported components and spare parts more affordable over time.
In the initial phase, the reduced duty is expected to apply only to fully built cars priced above 15,000 euros, or roughly Rs 16.3 lakh. Over the longer term, the agreement could pave the way for further reductions in import duties.
Now, the question arises which European cars are expected to be cheaper in India? Check list below-
Mercedes-Benz- AMG GT, AMG C 63, AMG GLC, AMG GLE, Maybach S 680, G-Class, CLE, SL, G-Wagon (G-Class), etc.
BMW- M4, M4 CS, M5, M8, Z4, XM hybrid SUV, Z4 roadster, etc
Audi- Q8, RS Q8, RS5 Sportback, RS7 and A8 L.
Porsche- All Porsche ICE models, including the 911, 718 Boxyer/Cayman, Panamera, Macan and Cayenne, etc.
Lamborghini- Urus, Revuelto, Temerario
Ferrari- 296 GTB/GTS, 12Cilindri, Purosangue, 849 Testarossa, Amalfi
Maserati- Grecale, GranTurismo, GranCabrio, MCPura, GT2 Stradale
