{"id":66842,"date":"2026-01-28T05:06:45","date_gmt":"2026-01-28T08:06:45","guid":{"rendered":"https:\/\/automotive.einnews.com\/article\/887174104"},"modified":"2026-01-28T05:06:45","modified_gmt":"2026-01-28T08:06:45","slug":"luxury-carmakers-react-on-india-eu-fta-no-instant-price-cuts-because","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/01\/28\/luxury-carmakers-react-on-india-eu-fta-no-instant-price-cuts-because\/","title":{"rendered":"Luxury carmakers react on India-EU FTA: No instant price cuts because…"},"content":{"rendered":"
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\"Luxury<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n

India and the European Union have finally wrapped up talks on a long-pending Free Trade Agreement (FTA). The deal aims to bring down import duties on EU-made cars sharply, from as high as 110 per cent to as low as 10 per cent over time. However, luxury carmakers have said that customers should not expect any immediate price cuts.<\/span>Even though the duty cut looks big on paper, it will not happen all at once. The India\u2013EU FTA will be rolled out slowly in phases. Only a fixed number of cars, around 2.5 lakh units a year, will be allowed to come in at lower duties. Carmakers are still waiting to understand which models will qualify and how many cars each brand can import. Until these details are finalised and the new rules actually come into effect, buyers should not expect any immediate price drop at showrooms.<\/span><\/span><\/p>\n

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India-EU FTA Explained: What Gets Cheaper, Who Gains And Why This Deal Matters To Indian Consumers<\/p>\n<\/div>\n<\/div>\n

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Most luxury cars already made in India<\/h2>\n<\/p>\n

<\/span>Besides that, most luxury cars sold in India are already locally manufactured, allowing brands to bypass high import duties. Only a limited number of niche models are imported as CBUs, and these are the ones that could see any benefit once the FTA is implemented.<\/span>Reacting to the development, Hardeep Singh Brar, President and CEO, BMW Group India, said “The conclusion of the India\u2013EU Free Trade Agreement is a historic and ambitious milestone, reflecting the growing strategic and economic relevance of India on the global stage.” However, he also clarified that the impact on prices will not be immediate. He explained that more than 95 per cent of the company\u2019s sales in India already come from locally manufactured models, with fully imported cars contributing only about 5 per cent of volumes. As a result, BMW Group India does not foresee any near-term price changes.<\/span><\/p>\n

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MINI Convertible S Review: Most Affordable but still fun? | TOI Auto<\/p>\n<\/div>\n<\/div>\n

<\/span>That said, the automaker noted that the FTA could open doors for introducing niche or low-volume global models in the future and may even support deeper localisation if demand grows. The company added that it will closely study the detailed implementation roadmap and timelines once the fine print of the agreement is available.<\/span>Brar further reiterated BMW\u2019s support for free trade, stating that such agreements help improve market access, strengthen collaboration and build more resilient supply chains.<\/span><\/p>\n

Local production remains a priority despite FTA <\/h2>\n<\/p>\n

<\/span>On the other hand, Santosh Iyer, MD & CEO Mercedes-Benz India, said \u201cMercedes-Benz welcomes the India-EU FTA as it will have a positive cascading effect on customer sentiments for the luxury segment, with a boost in overall economic growth. A gradual tariff reduction on vehicles and fully liberalized automotive parts are strategically important decisions in the FTA for the automotive industry.\u201d<\/span>He further explained that the FTA could improve vehicle availability, allow better access to top-end global models, and enable faster introduction of the latest technologies in India. Despite this, Mercedes-Benz reiterated its continued focus on local production, stating that it will keep adding value through its India-based manufacturing operations.<\/span><\/p>\n

FTA a long-term win for both regions<\/h2>\n<\/p>\n

<\/span>Piyush Arora, MD & CEO of Skoda Auto Volkswagen India, also welcomed the India\u2013EU FTA, calling it a forward-looking agreement that strengthens cooperation between the two regions. The company noted that with the EU being one of India\u2019s largest trading partners, the agreement has the potential to benefit both economies. <\/span>“<\/span>Greater tariff certainty and a more predictable trade framework will allow us to evaluate the introduction of a wider range of European models for Indian customers. <\/span>Over time, this can support deeper technology transfer, capability building, and long-term investment in the Indian automotive ecosystem. As more details emerge, we will be able to assess the medium- and long-term implications of this agreement,” Arora added.<\/span><\/span>At the same time, the company has cautioned against expecting immediate changes. Arora also stated that with its current product lineup and offers, customers need not delay purchase decisions in anticipation of speculative price reductions.<\/p>\n

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… over time. However, luxury carmakers<\/span> have said that customers should … in at lower duties. Carmakers<\/span> are still waiting to … TOI Auto That said, the automaker<\/span> noted that the FTA could … vehicles and fully liberalized automotive<\/span> parts are strategically important …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-66842","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/66842","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=66842"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/66842\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=66842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=66842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=66842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}