Luxury car buyers in India could soon have a reason to celebrate. The Indian government is reportedly considering a major reduction in import duties on European Union (EU)–made vehicles—from the current 110% to around 40%—as part of a proposed trade agreement with the EU.
If this move is implemented, it could significantly lower the prices of imported luxury cars, making premium European brands more accessible to Indian consumers.
At present, fully imported luxury vehicles attract extremely high import duties, pushing their on-road prices far beyond reach for many buyers. Under the proposed trade deal, the government plans to reduce these duties substantially, easing the cost burden on both manufacturers and customers.
Major European luxury carmakers are expected to gain the most, including:
Lower duties could allow these brands to price their models more competitively in India or introduce more globally popular models that were earlier considered too expensive for the market.
If import duties are cut to 40%, buyers can expect:
This decision could give a strong push to India’s luxury car market, encouraging higher sales volumes and attracting global automakers to strengthen their presence in the country. It may also positively impact the premium pre-owned car market, as new car price corrections often influence resale values and buyer demand.
While the proposal is still under discussion, its implementation could be a game-changer for luxury car enthusiasts in India. If finalized, owning a European luxury car may soon become more attainable than ever before.
For buyers considering premium pre-owned luxury cars, this could be the perfect time to stay alert to market movements and pricing opportunities.
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