Bottom Line Up Front
The new India‑EU free‑trade agreement will slash import duty on fully built European cars from a hefty 110% to just 10%, which could cut on‑road prices in India by up to 50%.
India‑EU FTA Cuts European Car Prices by Half – What It Means for Indian Buyers
Image: India‑EU FTA Cuts European Car Prices by Half – What It Means for Indian Buyers – Performance Comparison and Specifications
Design & Looks
European manufacturers are known for sleek, premium styling. From the sharp lines of an Audi to the elegant silhouette of a Mercedes, these cars have long set the benchmark for design in India. With duties dropping, more buyers will be able to afford that sophisticated look without the usual price shock.
Performance & Mileage
Performance remains a strong selling point. A typical 2.0‑litre turbo‑charged engine in a BMW 3‑Series delivers around 190 hp and a combined mileage of 15‑16 km/l. An Audi A4 with a similar engine offers 188 hp and about 14‑15 km/l. These figures are competitive against Japanese rivals, and the lower duty means the performance edge becomes even more attractive.
Price & Rivals
Current import duty pushes a European sedan that costs €30,000 abroad to roughly ₹45 lakh in India. After the duty cut to 10%, the same car could sit near ₹22‑23 lakh, putting it squarely against top Indian‑made sedans and Japanese imports.
Key price comparisons (post‑FTA) are:
| Engine | Mileage (km/l) | Price (₹ lakh) | Top Features |
|---|---|---|---|
| 2.0 L Turbo (Audi A4) | 14‑15 | 22‑23 |
|
| 2.0 L Turbo (BMW 3‑Series) | 15‑16 | 22‑24 |
|
| 2.0 L Turbo (Mercedes C‑Class) | 13‑14 | 23‑25 |
|
These prices are estimates based on the new duty rate and will vary with taxes, insurance and dealer discounts.
FAQ
What will be the new import duty on fully built European cars?
The duty drops from 110% to 10% under the India‑EU FTA.
How much can I expect to save on a European sedan?
Potential savings are around 40‑50% off the current on‑road price, depending on the model and local taxes.
Will Indian buyers get the same warranty and service as before?
Yes. The FTA does not change warranty terms; manufacturers will continue to offer the same service networks and after‑sales support.
What are your thoughts on this deal? Drop a comment below and let us know which European car you’d love to see on Indian roads.
Source: Read Official News
