India-EU FTA to Slash Luxury Car Prices: BMW, Mercedes, Lamborghini to Get Cheaper

• Premium European luxury cars like BMW, Mercedes, Lamborghini, Porsche, and Audi are expected to become cheaper in India with the India-EU Free Trade Agreement (FTA).
• India will offer quota-based import duty concessions, reducing levies to 10% for specified numbers of European cars, while the EU will eliminate duties on Indian automobiles.
• The FTA, expected to be signed later this year and come into force early next year, aims to balance sensitivities by protecting India's small car market (below Rs 25 lakh).
• European car manufacturers are encouraged to consider manufacturing in India beyond the quota, leveraging India's growing market and 'Make in India' initiative.
• For electric vehicles (EVs), duty reductions will begin from the fifth year of the agreement, protecting India's nascent EV production for the initial period.

Why It Matters: The India-EU FTA will make premium European luxury cars more affordable in India through quota-based duty cuts.