India-EU FTA Boosts Luxury Car Market with Major Import Duty Cuts
DETAILS
Immediate Impact: Luxury Cars Get a Price Break
- Cars priced between €35,000 and €50,000 will now attract a 30% duty, with an annual import cap of 33,000 units.
- Over a period of 10 years, the combined cap for all three price categories will increase to 160,000 units, gradually allowing more European luxury cars to enter India.
Electric Vehicles: Protection for Local Manufacturers
- Import duties on high-end European EVs will be reduced to 30-35%, but only five years after the FTA comes into effect.
- These cuts will apply to EVs priced above €20,000, ensuring that India’s local EV manufacturers retain a competitive edge in the initial years.
- Over time, tariffs for European EVs could drop further to 10%, within the annual import quota, opening doors to premium EV models such as BMW i7, Porsche Taycan, and Volvo EX40.
Quota-Based Market Opening: Balancing Competition and Protection
- A total of 250,000 luxury vehicles per year are allowed under the reduced tariff regime.
- Cars priced below INR 1.64 million (US$17,984.7) remain largely protected to encourage local manufacturing under the Make in India initiative.
- Imports beyond the quota continue to attract existing high duties, balancing market liberalization with domestic industry protection.
India’s Import Trends: Where European Luxury Cars Stand
Germany, Belgium, and Sweden are the largest exporters of petrol luxury cars with engine capacities above 1500cc:
| Country | FY 2024-25 (US$ Million) | FY 2025-26 (April–Nov) |
| Germany | 91.101 | 37.425 |
| Belgium | 76.278 | 49.123 |
| Sweden | 39.21 | 31.909 |
Diesel SUVs and Luxury Vehicles
Germany, the Czech Republic, and Belgium lead imports of diesel luxury SUVs.
| Country | FY 2024-25 (US$ Million) | FY 2025-26* (April–Nov) |
| Germany | 0.163 | 0.072 |
| Czech Republic | 0.041 | 0.00 |
| Belgium | 0.00 | 0.088 |
Electric Luxury Vehicles
Germany dominates EV exports to India, followed by Sweden and Belgium.
| Country | FY 2024-25 (US$ Million) | FY 2025-26* (April–Nov) |
| Germany | 117.98 | 42.128 |
| Sweden | 7.56 | 2.136 |
| Belgium | 0.00 | 0.825 |
Popular European Luxury Models in India
| Brand & Model | Origin | Price in India (INR) |
| Lamborghini Urus | Italy | 41.8–45.7 million |
| Mercedes-Benz GLA | Germany | 4.97–5.27 million |
| Ferrari 812 | Italy | 52 million |
| Maserati MC20 | Italy | 36.9 million |
| Audi RS5 | Germany | 10.7 million |
| BMW i7 (EV) | Germany | 20.5–25.8 million |
| Porsche Taycan (EV) | Germany | 16.7–25.3 million |
| Volvo EX40 (EV) | Belgium | 5.61 million |
| Maserati Levante | Italy | 15 million |
| Ferrari Roma | Italy | 37.6 million |
Strategic Implications for European Automakers
- Opens up the high-end automobile segment to new buyers.
- Encourages local assembly and technology transfer.
- Promotes investment in India’s luxury car ecosystem, including employment generation and supply chain integration.
What It Means for Indian Consumers
- Greater choice in luxury cars and premium EVs.
- Lower prices on imported European vehicles within the quota.
- Opportunity to experience high-performance models that were previously cost-prohibitive.
Latest News
Latest cars
Rs.6 Lakh - 6 Lakh
Rs.20 Lakh - 21 Lakh
Rs.9 Lakh - 10 Lakh
Rs.10.79 Lakh - 19.81 Lakh
Rs.19.95 Lakh - 29.95 Lakh
Upcoming cars
Rs.10 Lakh - 25 Lakh
Rs.25 Lakh - 30 Lakh
Rs.27.00 Lakh - 27.00 Lakh
Rs.20 Lakh - 21 Lakh
Rs.20 Lakh - 25 Lakh
More Related News
JSW Motors to Enter Indian Passenger Car Market With New SUV
The Indian passenger car market is set to welcome a new player. JSW Group, one of India’s largest and most diversified conglomerates, is preparing to enter the car segment under a new brand called JSW Motors. According to recent reports, the company plans to launch its first SUV before Diwali 2026, marking its official debut as a car manufacturer in India. This move comes after years of involvement in the automotive supply chain and strategic partnerships, including the well-known JSW–MG Motor India joint venture. With SUVs continuing to dominate Indian car sales, JSW’s entry could add serious competition in the mid-size and premium SUV space. Going forward in this articles below down we will highlight the journey of JSW group & how they plan to enter Indian passenger vehicle industry. Their thoughts, strategy, plan & execution and most importantly their choice to disrupt Indian automobile sector with launch of their first vehicle and that too of SUV vehicle. We will highlight the launch timeline, expected price, platform details, powertrain options, and what it means for the Indian auto market.
Read More
Indian Consumers Are Choosing Homegrown Brands in Record Numbers
The Indian automobile industry is no longer playing catch-up with global giants—it is setting the pace. Over the last few years, especially post-2023, Indian-origin automobile brands have entered a phase of unprecedented growth, innovation, and consumer trust. There is 70,000 bookings for Tata Sierra in a single day and 93,000 bookings for Mahindra 7X0 in just four hours. This surge in bookings clearly signals one thing: Indian consumers now believe in Indian brands more than ever before. What we are witnessing today is the golden phase of Indian automobiles, driven by bold design choices, global-level safety standards, advanced technology, and a deep emotional connection with buyers.
Read More
Neck to Neck Brand Value Comparison Maruti Suzuki and Tata Motors
The Indian passenger vehicle market is one of the most competitive in the world, and two names consistently dominate conversations around trust, scale, and growth: Maruti Suzuki and Tata Motors. While both brands manufacture cars for Indian consumers, their approach to business, pricing, customer targeting, and brand value is fundamentally different. This detailed comparison explains how Maruti Suzuki has built unmatched market dominance and why Tata Motors is slowly reshaping its brand toward premium aspirations, based on FY25 passenger vehicle data.
Read More
Indias Top Selling Cars for 2025
The Indian automobile market continued its strong momentum in November 2025, reflecting steady consumer confidence and consistent demand across key vehicle segments. Despite rising competition and evolving buyer expectations, car buyers showed a clear preference for models that deliver a balanced mix of value for money, reliability, safety, fuel efficiency, and low ownership costs. From affordable hatchbacks to feature-rich mid-size SUVs, the sales figures reveal how Indian consumers are increasingly choosing vehicles that suit both urban and semi-urban needs. According to the latest sales data, Tata Motors and Maruti Suzuki once again dominated the charts, while Hyundai and Mahindra maintained a solid presence with their popular offerings. Here’s a closer and more detailed look at the top selling cars in India in November 2025 and the factors driving their success.
Read More
Tata Sierra: What Makes It a Game Changer for Tata Motors
The Tata Sierra is not just another SUV from Tata Motors. It represents the return of an iconic name that once changed how Indians looked at lifestyle vehicles. Now reintroduced for a new generation, the new Tata Sierra SUV reflects Tata Motors’ evolving vision in terms of design, technology, safety, and future mobility. With customer expectations rising, the electric vehicle (EV) market in India growing rapidly, and intense competition in the mid-size SUV segment, the Tata Sierra is being positioned as a key product that could reshape Tata Motors’ presence in the market.
Read More
How the Audi Q3 Price in India Wins Over Luxury Car Buyers
The Audi Q3 has earned a solid reputation in India as one of the most stylish, reliable, and practical compact luxury SUVs. It blends premium looks, powerful performance, and modern technology into a size that suits today’s fast-paced urban lifestyle. Whether you're stepping into the luxury segment for the first time or looking for a premium family SUV, the Audi Q3 delivers an experience that feels truly special.
Read MoreSubscribe Now
Want to Know more about Upcoming and New Cars… Ask Us!
