India-EU FTA: Ferrari & Porsche Prices to Drop in India : Check Details

Akash Patil

27 Jan 2026, 06:58 PM

2 Mins read

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Summary is AI-generated, newsroom-reviewed

A quota of 2,50,000 vehicles a year will apply through the transition. The EU says this alone could reset India’s premium car market.
The agreement also states that duties on auto components will be completely abolished after five to ten years.
Only ICE-powered vehicles will benefit from the agreement first, while EVs will face similar tariff cuts after five years.

India-EU FTA_ premium luxury cars Gets Cheaper cpver
The landmark India-European Union Free Trade Agreement (FTA), officially concluded on January 27, 2026, is set to revolutionize the Indian automotive market. High-end European marques—including Lamborghini, Ferrari, Porsche, Land Rover, Mercedes-Benz, Audi, Rolls-Royce, and Bentley—are poised to become significantly more affordable.

This historic “Mother of all Deals” dismantles long-standing trade barriers, making European exotics accessible to a broader segment of Indian luxury car enthusiasts.

India will gradually cut tariffs on cars from 110 percent to as low as 10 percent as part of its new FTA with EU, and fully abolish duties on car parts within five to ten years.

Currently, the import duty levied by India on completely built-up (CBU) passenger vehicles is 110 percent for cars costing over $40,000, and 70 percent for cars costing up to $40,000.

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What the India-EU deal means for car buyers

Tariff Reductions: Effective import duties on cars will drop from the current 110% (for cars over $40,000) to 40% initially, with a phased reduction to as low as 10%.
Annual Quota: The lower tariff rates apply to a concession quota of 250,000 vehicles annually.
Car Parts: Import duties on automotive parts will be fully abolished over a 5 to 10-year period.
Price Threshold: Concessions apply only to cars with an import price (landed cost) above €15,000 (₹16.5 lakh).

How much cheaper could cars get?

Model	Current Ex-showroom Price	Expected Price Post FTA
Mercedes-Benz G-Class	₹2.90 – 4.00 crore	₹2.00 – 2.70 crore
Land Rover Defender 130	₹1.70 – 2.00 crore	₹1.15 crore
Porsche 911	₹2.00 – 3.80 crore	₹1.30 – 2.60 crore
Audi RS Q8	₹2.32 crore	₹1.60 crore
Rolls-Royce Ghost	₹6.95 – 7.95 crore	₹4.80 – 5.50 crore
Bentley Bentayga	₹4.10 crore	₹2.80 crore
Lamborghini Urus	₹4.18 crore	₹2.90 crore
Ferrari Purosangue	₹5.50 crore	₹3.80 crore

Tags:

audi bentley ferrari lamborghini land rover mercedes-benz porsche price cut rolls royce

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