Which cars will be cheaper after India-EU trade deal?

India and the European Union are finalising a Free Trade Agreement (FTA) that could make luxury cars more affordable for Indian buyers. Under the proposed deal, India may reduce import duties on fully built European cars from the current 100% to around 40%. This move is expected to benefit premium brands like BMW, Mercedes-Benz, Audi, and Volkswagen, making their models significantly cheaper.

Currently, high import duties double the price of imported luxury vehicles. With the new FTA, the government plans to allow 2.5 lakh European cars to be imported over seven years at the reduced 40% duty. This would be a major shift, especially for electric vehicles (EVs), which are also expected to be included in the deal.

The agreement is still under negotiation, but if finalised, it could reshape India’s luxury car market. It would also encourage European carmakers to invest more in India, possibly leading to local manufacturing in the long run.

For Indian consumers, this means better access to high-end cars at lower prices, and for the auto industry, a potential boost in competition and innovation.