India and the European Union have signed a historic free trade agreement (FTA). This trade deal will gradually reduce the import tariff on high-end imported European cars from 110 percent to 10 percent. This deal will apply to 2.5 lakh imported European cars that cost above 15,000 euros, which means around Rs 16.31 lakh, every year. The amendments in the import duties on European cars will be done in phases; in the first phase, the import duties will be reduced to 40 percent, and then they will gradually come down to 10 percent. As of now, India imposes a 70 percent import duty on cars priced below USD 40,000, which means approx. Rs 36.66 lakh, and 110 percent import duty on cars priced above USD 40,000. In this article, we explore the European cars that will benefit the most from the India-European Union FTA.
Rolls-Royce Cullinan
The most expensive Rolls-Royce car in India, the Cullinan SUV, can see a steep price drop with the India-European Union FTA. Currently, this uber-luxurious European car is priced at Rs. 10.50 – 12.25 Cr, and the price cuts due to the India-EU trade deal can bring its price down to Rs. 5.50 – 6.41 Cr. For affluent Indians who want to own a Cullinan, such a price drop can be music to their ears. The Rolls-Royce Cullinan is a huge luxury SUV, with high-end features like a Viewing Suite (two rear-facing chairs that deploy from the boot), a starlight headliner, a fridge, and others.
Rolls-Royce Phantom
Currently priced at Rs. 8.99 – 10.48 Cr, the Rolls-Royce Phantom can have its price dropped as low as Rs. 4.70 – 5.48 Cr, in upcoming years, thanks to the India-EU FTA. The Phantom is one of the oldest Rolls-Royce cars and the second-most expensive European car in India. It is a 4-door limousine with a lot of suave features like an in-built fridge, rear seat entertainment displays, expansive lounge-like rear seats with massage function, and more.
Rolls-Royce Ghost Series II
Like the Phantom, the Rolls-Royce Ghost Series II is an ultra-luxury sedan and is one of the most expensive European cars in India. As of now, the Ghost Series II costs Rs. 8.95 – 10.52 Cr, and post the implementation of the India-EU trade deal, its prices are expected to drop to as low as Rs. 4.68 – 5.51 Cr. The Ghost Series II substantiates its brand’s ‘Post Opulence’ design philosophy and offers opulent perks like a radical Planar Suspension System, which consists of a unique upper wishbone damper and a flagbearer system with cameras to assess the road ahead, offering the famous ‘Magic Carpet Ride’.
Bentley Flying Spur
As of now, the Bentley Flying Spur has an ex-showroom price of Rs. 5.25 – 7.60 Cr, and in the coming years, its prices are expected to drop to as low as Rs. 2.75 – 3.98 Cr, thanks to the India-EU FTA. The Bentley Flying Spur is the most powerful car in Bentley’s history. It is equipped with a 4.0-litre twin-turbo V8 engine with plug-in hybrid tech. This opulent European car produces 782 PS power and 1,000 Nm peak torque, and can sprint from 0 to 100 km/hr in just 3.5 seconds. The richness is not limited to the mechanical power, as the Flying Spur offers luxurious seats with electric adjustment, ventilation, and massage function, and many other suave amenities.
Bentley Continental
For the exquisite balance it strikes of couture styling, suave luxury, and supercar performance, the Bentley Continental is one of the finest luxury European cars for the elites. The Continental has been a favourite of affluent Indians for a long time, and, currently, you can buy a Bentley Continental at Rs. 5.23 – 8.45 Cr (ex-showroom). However, the post the full fledge roll out of India-EU FTA, this desirable European car can be priced as low as Rs. 2.73 – 4.42 Cr.
Bentley Bentayga
The most affordable Bentley car, the Bentley Bentayga SUV, has an ex-showroom price of Rs. 5 – 6.75 Cr in India. Post the enforcement of the India-EU trade deal, its price can drop to Rs. 2.61 – 3.53 Cr. This means, a few years down the line, you can own the luxurious perks of this suave 4,5, or 7-seater European car like 20-way adjustable front seats with massage function, 4-zone climate control, the high-end Naim sound system, for Rs. 2.61 – 3.53 Cr (ex-showroom).
Lamborghini Revuelto
The most expensive Lamborghini car in India, Revuelto, costs Rs. 8.89 Cr (ex-showroom) as of now. Once the India-EU FTA comes into effect, this desirable European car can become more accessible and have its price dropped to as low as Rs. 4.65 Cr. The Revuelto is the world’s first HPEV (High Performance Electrified Vehicle), and is powered by a 6.5-litre petrol-electric hybrid engine, along with three electric motors, producing 1015 PS power. This supercar can sprint from 0 to 100 km/hr in 2.5 seconds, which makes it one of the fastest cars in the world.
Lamborghini Temerario
The Lamborghini Temerario is the successor to the far-famed Lamborghini Huracan. As of now, the Lamborghini Temerario is priced at Rs. 6 Cr (ex-showroom), and with the India-EU FTA, its price can drop to Rs. 3.14. Like the Lamborghini Revuelto, the Temerario is an HPEV (High Performance Electrified Vehicle). It is powered by a 4.0-litre twin-turbo V8 engine connected to 3 electric motors. This setup produces 920 Ps power and can make this European car zip from 0 to 100 km/hr in 2.7 seconds.
Ferrari SF90 Stradale
With an ex-showroom price of Rs. 7.50 Cr, the Ferrari SF90 Stradale is the most expensive Ferrari car in India. The India-EU FTA drop the price of this peach of a European car to Rs. 3.92 Cr. The SF90 Stradale is the first PHEV (Plug-in Hybrid Electric Vehicle) Ferrari. Powered by a 4-litre twin-turbo V8 engine connected to three electric motors and a 6.5 kWh battery pack, the SF90 Stradale produces 1,016 PS power and can sprint from 0 to 100 km/hr in 2.5 Seconds
Ferrari 296 GTB
Ferrari’s entry-level sports car, the Ferrari 296 GTB, is a lot of driving fun packed in a compact, beautiful machine. Powered by a 3.0-litre twin-turbo V6 paired with a plug-in electric motor, the 296 GTB produces 830 PS power and 740 Nm peak torque, and can do a 0 to 100 km/hr dash in 2.9 seconds. In India, the Ferrari 296 GTB costs Rs. 5.40 Cr (ex-showroom) as of now. Post the roll of India-EU FTA, this European car can have its price dropped to Rs. 1.96 Cr.
Summary
India has been big on European cars for a long time. Thanks to the India-European Union Free Trade Agreement, Indians will have easier access to premium European cars in the not-so-distant future. All the same, notably, the European cars that will see the biggest price drops will be the most expensive European cars, and even after price reductions, only affluent Indians will be able to afford them. More importantly, as of now, we can only make an estimate as to how much the European car brands will reduce the prices of their cars, because many cases can arise with the India-EU trade deal. The European car brands may experiment with new body types of their cars, raise their profit margins, and so on and so forth. For now, we can hope for the best.
FAQs
Which European cars will benefit the most from the India-EU Free Trade Agreement?
The European cars that will see the highest price reduction due to the India-EU FTA are Rolls-Royce Ghost Series II, Rolls-Royce Phantom, Rolls-Royce Cullinan, Bentley Bentayga, Bentley Continental, Bentley Flying Spur, Lamborghini Revuelto, Lamborghini Temerario, Ferrari 296 GTB, and Ferrari SF90 Stradale.
Which are the most expensive European cars in India?
The most expensive European cars in India are Rolls-Royce Ghost Series II, Rolls-Royce Phantom, Rolls-Royce Cullinan, Bentley Bentayga, Bentley Continental, Bentley Flying Spur, Lamborghini Revuelto, Lamborghini Temerario, Ferrari 296 GTB, and Ferrari SF90 Stradale.
How will European Cars become cheaper with the India-EU Free Trade Agreement?
The India-EU Free Trade Agreement will gradually reduce the import tariff on high-end imported European cars from 110 percent to 10 percent. This deal will apply to 2.5 lakh imported European cars that cost above 15,000 euros, which means around Rs 16.31 lakh, every year. The amendments in the import duties on European cars will be done in phases; in the first phase, the import duties will be reduced to 40 percent, and then they will gradually come down to 10 percent.
