Big good news for car lovers in India! After many years of talks, India and the European Union (EU) have concluded a major Free Trade Agreement (FTA) in early 2026. This deal will slowly cut import taxes (duties) on cars coming fully built from Europe.
Right now, these duties can be 70-110% — making luxury imports super expensive. Under the new pact:
- Duties start dropping to around 40% soon (for a limited number of cars each year).
- Over time (5-10 years), they go down to just 10%.
- But there’s a catch: Only a quota (about 2.5 lakh cars per year) gets the lower rate. Extra cars pay full old duty. Electric cars wait longer (no cut for first 5 years). Most locally assembled cars (CKD) see smaller or later benefits.
This means fully imported (CBU) luxury and performance cars from EU countries could drop in price by a lot — saving buyers lakhs or crores! But changes won’t happen overnight; expect real price drops from 2027-28 after final approvals.
Here are some popular models that could become way more affordable:
1. Mercedes-Benz G-Class (G-Wagon) The king of tough luxury SUVs! Current on-road price: ~₹3.5-4 crore+. With lower duties: Could fall to ~₹2-2.5 crore (or even lower at 10%). Huge savings for fans!
2. Ferrari Models (like 296 GTB, Purosangue, Portofino) Dream Italian supercars now cost ₹3-11 crore+. Post-FTA: Prices might halve in phases — think ₹2-6 crore range for many models. More people could own a Ferrari!
3. Land Rover Defender Adventure lovers’ favorite! Current: ₹1-2.6 crore (some imported from Slovakia in EU). Expected: Down to ₹50 lakh – ₹1.7 crore. Could sell even more on Indian roads!
4. Other Hot Ones
- Porsche 911: From ~₹2 crore → possibly ~₹1 crore.
- Range Rover (imported versions): Big drop possible.
- Lamborghini Urus, BMW M cars, Audi RS models: All fully imported EU ones win big.
This India EU free trade agreement is called the “mother of all deals” by some — great for luxury brands like Mercedes, BMW, Ferrari, and more. But remember: Prices depend on final rules, company decisions, and that limited quota.
Excited? Keep watching for official updates as the deal gets signed and starts rolling out!
(Prices are approximate/estimated based on reports from Autocar India, Reuters, Spinny, and others. Actual changes will come step by step.)
Based on info from The Lallantop.