Once again, the same buzz is in the market. India–EU FTA. And the moment you hear those words, everyone’s eyes light up. Will cars become cheaper? that’s the question on everyone’s lips. Straight talk? Headlines and ground reality are always different.
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I’ve been in the automobile industry for ten years. Seen launches, showroom chaos, and reality checks on policy promises. Every time, one thing repeats expectations run fast, reality moves slow.
Import Duties Might Reduce, But Slowly
First point. Import duties on European cars might reduce. But not overnight. It will happen in a phased manner. Little by Little by way of little, 12 months after year. Today in India, completely imported vehicles face responsibilities of as much as a hundred percentage. Shocking, right? That’s why a car costing 50 lakhs there finally ends up round 1 crore right here. Crazy, but real.
Under the FTA, these duties might also gradually lessen. But the government will have conditions. Minimum charge, constrained volume, or neighborhood investment all possible. Straight talk luxurious brands will gain, mass-marketplace cars gained’t.
Luxury Carmakers Benefit the Most
Mercedes, BMW, Audi, Volvo those are the primary beneficiaries. Their customers are a bit one of a kind. Not fee-touchy, however fee-aware. And persistence is anticipated too.
I don't forget a scene with a BMW provider. He stated Sir, the 7 Series client hesitates now not because of the auto but because of uncertainty. If pricing have been clear, the deal would be easy. The FTA could bring that clarity. A small example, but it says a lot.
EVs Both Opportunity and Risk
The European Union is clearly pushing for EVs. Volvo EX90, Mercedes EQS, BMW i7 if prices drop a bit, the premium EV market might get a little excitement.
But here’s the twist. Charging infrastructure, service readiness, software localization these are costs. Just lowering duties won’t suddenly make EV ownership smooth. I recall a premium EV test drive where the screen froze. It stayed in the workshop for three days. The customer said Sir, the car is great, but India isn’t ready. The FTA didn’t solve this problem. Reality bites.
The Government’s Angle
India’s focus is different. Duty cuts shouldn’t hurt local manufacturing. If imported cars get cheaper, why would companies invest in local plants? Valid point. So negotiations are trying to find a balance consumer benefit, but Make in India must stay alive. That’s the tricky part.
Which Cars Could Benefit
If the agreement is finalized, some models will be in the spotlight. Mercedes E-Class, S-Class, EQS. BMW 5 Series, 7 Series, iX, i7. Audi A6, A8, Q8 e-tron. Volvo XC90 and EX90.
Volkswagen Group’s low-volume performance models like Porsche could also benefit. Skoda and Volkswagen’s premium imports may see some relief. Mass-market cars? Sorry, not much difference there.
Also read : Imported Cars in India Could Get Cheaper?! Heres What the EU FTA Really Means for You
What to Watch Next
The FTA is an opportunity, not a shortcut. Luxury cars may become a bit more accessible. Options will increase. Pricing may get a bit rational. But don’t expect miracles. The real impact will show up in showroom price lists, not press releases. And remember, in the automobile industry, execution matters more than policy. The FTA will face the same test.
