PM Modi To Bring Back Your Favourite Ford SUV? » MotorOctane

The India-EU trade deal created quite a buzz in the automotive market when it was announced. And now with the new India-US deal coming into place, could we see another big change in the market? Let’s find out.
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Luxury Cars To Get Cheaper

Under the new India-US trade deal, tariffs have been significantly reduced. The tariff now sits at 30%, which is considerably lower than the earlier 110%. However, it is not as plain and simple as that. These tariff cuts apply only to vehicles with engines larger than 3000 cc. Moreover, these cuts will be phased out over 10 years. 

This deal is of no avail to Tesla, who are struggling big time in India. The tariff cuts have been limited to ICE cars only. No EV cars get this benefit as the government tries its best to protect in-house EV manufacturers like Mahindra and Tata. This move must have left Tesla fuming. 

This means that no cars can currently avail this benefit. The only other American manufacturer in the country is Jeep, which already has a manufacturing plant in India. Furthermore, all its models use a 2.0-litre diesel engine. So, who is this deal beneficial to? 

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Ford Comeback Imminent? 

This trade deal isn’t helpful to Ford either. If Ford returns to India, it would focus on compact and midsized SUVs, as well as the Ford Endeavour. None of these cars has a 3.0-litre engine, so importing them from the USA would make no sense. The only way they could make the most of this deal is if they relaunch the Ford Mustang V8. The tariff cuts would significantly lower its price and be good news to people who couldn’t buy it when it was first launched. 

This trade deal could motivate manufacturers like Jeep and Ford to bring premium products like the F150 Raptor to cater to a certain niche. But otherwise, automakers will face little to no benefits from this deal at the moment. 

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Harley-Davidson To Get Cheaper? 

Interestingly, import duties on US-made motorcycles have been nullified, which could excite the hardcore Harley-Davidson fanbase. These tariff cuts mean that its iconic range of bikes will get more affordable for the Indian market. Its customer base may not be very large, but the brand will become more accessible than ever. These tariffs will be applied immediately, so if you are planning to buy one, be prepared to head to the nearest dealership. 

All in all, this deal seems ineffective for car manufacturers at the moment. However, it could motivate some manufacturers to release exciting imported models in India, but you would have to wait till then. 

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