After nearly two years of negotiations, India and the European Union have finally concluded their long-awaited Free Trade Agreement (FTA). One of the most significant outcomes of the deal is the reduction of import duties on European cars. But while prices are expected to come down, there is a catch – the relief applies only to CBU (completely built unit) imports and not to CKD (completely knocked down) units, which many luxury carmakers rely on for local assembly.
Moreover, the duty cut will apply only to a concession quota of 2.5 lakh cars annually, ensuring that the benefit is controlled and phased. As of now, imported cars priced below USD 40,000 attract up to 70% import duty, while those valued above USD 40,000 are taxed at a steep 110%. The government has announced that duties under the FTA will be gradually brought down to 10%, but the exact rate of annual reductions is yet to be revealed. For electric vehicles, the timeline stretches further, as no duty cuts will be offered for the next five years.
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Here’s a list of models that will benefit from the trade agreement between India and the European Union. The list includes models from major luxury car manufacturers like Mercedes-Benz, BMW, and others:
* Mercedes-AMG G 63
* Mercedes-AMG CLE 53
* BMW M2
* BMW M4 Coupe
* BMW M8 Coupe
* BMW Z4
* BMW i4
* BMW XM
* Audi RS Q8
* Audi R8
* Porsche 911
* Porsche Cayenne
* Porsche Macan
* Porsche Taycan
* Porsche Panamera
* Maserati Grecale
* Lamborghini Urus SE
* Lamborghini Revuelto
* Lamborghini Temerario
* Volvo EX90
* Land Rover Defender
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India EU FTA, India EU Free Trade Agreement, India EU Free Trade Deal
