List of European cars set to become more affordable under the ‘mother of all deal’

India and the European Union have finalised a pact that sharply lowers import duties on completely built vehicles, bringing the levy down from 110 per cent to 10 per cent. India currently levies import duties on fully built cars ranging from 70 per cent to as high as 110 per cent. Under the new India-EU free trade agreement, these peak tariffs are expected to be reduced to around 40 per cent in the initial phase. The changes will not take effect right away, as the agreement is expected to be implemented in phases over the next one to two years, with import tariffs first reduced to 40 per cent before being gradually brought down to 10 per cent.

Around two lakh cars a year could be eligible for concessions under the proposed deal, although electric vehicles are expected to remain excluded from FTA benefits for the first five years, according to a Reuters report. In the initial phase, the reduced duty is expected to apply only to fully built cars priced above 15,000 euros, or roughly Rs 16.3 lakh. Over the longer term, the agreement could pave the way for further reductions in import duties. The agreement also focuses on lowering duties on parts and components, with a plan to phase out these tariffs over the next five to ten years, a move that is expected to make imported components and spare parts more affordable over time.

Talking about the cars that are expected to become more affordable in India if the proposed trade agreement moves forward. Completely imported models from manufacturers such as BMW, Mercedes-Benz, Audi, Volkswagen, Skoda, Porsche, Lamborghini, Ferrari and Maserati could see price reductions. Do note that all the models and details mentioned beloware indicative and based on current information available.

Several performance and luxury models from German manufacturers could become cheaper as well. These include the AMG G63, G400d, AMG S 63 E Performance and Maybach S-Class S680 from Mercedes-Benz. BMW models include M4, M5, M8, XM hybrid SUV, Z4 roadster and more. From Audi, the Q8, RS Q8, RS5 Sportback, RS7 and A8 L. All Porsche ICE models, including the 911, 718 Boxyer/Cayman, Panamera, Macan and Cayenne. At the more accessible end, cars such as the Skoda Octavia vRS and Volkswagen Golf GTI, Tiguan R-Line and soon-to-be-launched Tayron R-Line may also benefit once the deal takes effect. High-end imports from Italian brands may see similar gains. Lamborghini’s entire India line-up, including the Urus, Revuelto and Huracan, is sourced from Italy. Models from Ferrari and Maserati could also become more affordable.Discover everything about the automotive world at Times of India.