Now middle class will also be able to buy BMW and Mercedes! Cars will become cheaper due to India-EU Trade Deal

The big trade agreement between India and the European Union, which was awaited for 18 years, has now been completed. In the 16th India-EU Summit, both the sides have announced Free Trade Agreement i.e. FTA. According to reports, this agreement may come into effect from the year 2027. The biggest benefit of this deal is going to be given to those Indian customers who dream of buying luxury cars like BMW, Mercedes and Audi. Till now, due to heavy import duty, these cars were out of reach of common people, but this deal can change the situation.

Import duty will be reduced from 110% to 10%

• Under the India-EU Trade Deal, there has been a major reduction in the import duty on cars coming to India from Europe. Currently, fully imported luxury cars are taxed at 70% to 110%, which doubles or even more than doubles their price. After the new agreement, this duty may reduce to only 10%. This simply means that the price of cars like BMW and Mercedes can be reduced by 50 to 70 percent. For example, if the import value of a car is Rs 20 lakh, then earlier its price after tax would reach Rs 45–50 lakh, but now the same car can be bought for around Rs 22–25 lakh.

Which car brands will benefit the most?

• European brands like BMW, Mercedes-Benz, Audi, Volkswagen and Porsche will get the most benefit from this deal. Cars like BMW 3 Series, Mercedes C-Class, Audi A4 and Volkswagen Tiguan can now become accessible to more people. This can completely change the Indian luxury car market.

What will be the impact on EV and auto industry?

• This duty cut on electric vehicles may be limited in the initial years, so that Indian companies like Tata and Mahindra do not suffer losses. Going forward, entry of European EV brands may also become easier. India-EU Trade Deal can come as a big relief for middle class customers. If the duty is really reduced by 10%, then buying a luxury car will no longer be just a dream.