India-EU FTA likely to make premium luxury cars less expensive
The Hindu
The India-EU FTA is set to make luxury European cars cheaper in India through phased duty reductions and import concessions.
Premium luxury European cars, such as BMW, Mercedes, Lamborghini, Porsche, and Audi, are set to become cheaper in the Indian market once the bilateral free trade agreement comes into force, likely next year, as India will offer quota-based import duty concessions under the pact, an official said.
The EU will eliminate duty in a phased manner for Indian automobiles, whereas India will reduce the levies to 10% for specified numbers.
Italian carmaker Lamborghini, which sells vehicles in India with prices starting around ₹3.8 crore, imports all its models. The EU FTA is likely to be beneficial for the company.
India-EU Summit LIVE
India and the European Union (EU) on Tuesday (January 27, 2026) announced the conclusion of negotiations for the free trade agreement (FTA). It is expected to be signed later this year and may come into force from early next year.
European manufacturers and Indian consumers were keenly watching the progress of this trade pact, talks for which were started in 2007. Extending duty concessions in the sector was one of the major contentious issues that led to a pause in negotiations in 2013.
The India-EU FTA is set to make luxury European cars cheaper in India through phased duty reductions and import concessions.
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