Based on the India-EU FTA details, the most significant price drops will be seen in Completely Built Unit (CBU) imports—cars that are fully manufactured in Europe and shipped to India. Locally assembled cars (like the Mercedes C-Class or BMW 3 Series) won’t see much change.
Here are the specific models expected to see the biggest price reductions:
1. Land Rover
- Defender: Although Land Rover is a British brand, the Defender is manufactured in Slovakia (an EU member country). Currently, it attracts high duties, so a drop to 40% duty would significantly reduce its price.
2. Porsche (The Biggest Beneficiary) Since Porsche imports almost its entire portfolio as CBUs, the whole brand becomes more accessible.
- Macan: The entry-level SUV could become much more competitive against locally assembled rivals.
- Cayenne & Panamera: Expect substantial price corrections.
- 911: The iconic sports car will see a massive drop in effective on-road prices.
3. Mercedes-Benz While they assemble many cars in Pune, their “Dream Cars” and high-performance collection are imports:
- Maybach Series: The imported Maybach S-Class and GLS 600.
- AMG Models: The legendary G-Wagon (G63 AMG), AMG GT, and other high-performance variants.
4. BMW Similar to Mercedes, the volume drivers are made in Chennai, but the halo cars are imports:
- M Series: The M2, M3, M4, and M5 competition cars.
- Z4 Roadster & XM: These niche models will become cheaper.
5. Audi
- Q8 & RS Q8: Audi’s flagship SUV is a CBU import and will benefit greatly.
- RS Models: The RS5 and RS e-tron GT (though the electric RS e-tron GT falls under the EV exclusion, the petrol RS5 will benefit).
6. Italian Supercars
- Ferrari, Lamborghini, & Maserati: These brands exclusively import their vehicles from Italy. The duty cut from ~110% to 40% could slash crores off the on-road prices of models like the Lamborghini Urus or Ferrari 296 GTB.
⚠️ Important Note on EVs: Popular European electric cars like the Porsche Taycan, Audi Q8 e-tron (Imported), or Mercedes EQS (Imported) will NOT get cheaper for the first 5 years, as the government is protecting domestic EV manufacturing.
