Ever wished to buy a luxury car? If so, this news could be music to your ears. Luxury car brands like Mercedes-Benz, Audi, BMW, and even Range Rover are expected to make their cars more affordable for the Indian market. But why?
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New Tariffs
In a historic trade deal, India and the EU (European Union) announced they are closing in on a deal to cut tariffs on European car imports to 40%. These numbers are significantly impressive when you consider that the prior tariff was set at a whopping 110%. Furthermore, this rate is expected to be lowered to 10% in the coming time. Let us examine the impact this move will have on the Indian automotive industry.
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What’s Going To Change?
This deal is yet to be finalised, but the prospect seems promising. The already-competitive Indian automotive industry is set to become even more competitive. These tariff cuts will apply exclusively to cars with an import cost exceeding 15,000 euros (approximately Rs 16.34 Lakh). These tax cuts will apply to 2,00,000 units annually, which is a large number. Furthermore, EVs are exempt from these tax cuts for the first 5 years. This move was made to protect Indian EV makers like Mahindra and Tata.
This move is set to open the automotive industry like never before, giving the public more options, especially if the tariff is lowered to 10%. The cost of CBU cars will be lowered, and you can own a premium European car for much cheaper than before. You just have to hold your horses until this deal is finalised. So, which cars are expected to be cheaper with this new deal?
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Which Cars Will Get Cheaper?
Some CBU cars that are currently on sale at the moment are –
- All Lamborghini cars
- All Ferrari cars
- All Maserati cars
- All Volvo cars
- All Mercedes AMG cars, along with the Maybach S-Class
- All BMW cars, along with the XM and Z4
- All Porsche cars
- Volkswagen Golf GTI and Tiguan R-Line
- Skoda Octavia RS
- Land Rover Defender
Apart from these, several upcoming cars, such as the Skoda Kodiaq RS and Superb, will also benefit from this deal, making them more accessible to buyers. Many European manufacturers already have manufacturing plants in India, but still get a fair amount of sales for their CBU units. Car enthusiasts will be particularly ecstatic since the tax cut means performance cars are likely to get cheaper.
Moreover, these tax cuts may motivate manufacturers to introduce new cars in India. Manufacturers used to refrain from releasing certain European models in India due to high tariffs, but with the tax leeway, they will be more encouraged than ever. And if these tariffs are further lowered to 10%, manufacturers will be willing to take more risks than ever.
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Hi, I’m Ravindra Meena , a bike and automobile enthusiast. I share honest reviews, mileage tests, and latest updates about bikes, cars, and EVs to help you make the right choice. Stay connected for real-world insights and trending auto news! 🏍️🚗