The recently signed India–EU Free Trade Agreement (FTA) is set to dramatically reduce import duties on European automobiles. Luxury brands like BMW stand to benefit the most, as import taxes on Completely Built Units (CBUs) could fall from 60–100% to nearly 25–30% over time.
To understand the scale of change, consider this example:
Volkswagen Golf GTI: ₹50.91 lakh → ₹26 lakh (estimated post-FTA)
This massive cut shows how premium European cars could soon become far more accessible in India. Below is a detailed, model-wise breakdown of how BMW prices could change after the FTA, with market impact explained for each car.
BMW 1 Series
The BMW 1 Series is the brand’s most affordable global hatchback and has always been out of reach in India due to high import duties. If introduced after the FTA, the 1 Series could see a dramatic price correction. A car that would normally cost around ₹45–48 lakh as a CBU could drop to ₹25–28 lakh. This would place it directly against premium hatchbacks like the Mini Cooper and entry-level luxury sedans. With BMW’s performance DNA, premium interior, and tech-loaded cabin, the 1 Series could become the perfect gateway car for young Indian buyers entering the luxury segment.
BMW 2 Series (Gran Coupe, Active Tourer)
The 2 Series range covers both sporty sedans and compact MPVs in Europe. Currently, the Gran Coupe in India starts around ₹43 lakh, but post-FTA, BMW could price future imported variants near ₹28–30 lakh. The Active Tourer, if launched, could sit around ₹30–32 lakh instead of ₹50+ lakh. These reductions would attract buyers who want a stylish BMW at a mid-premium price. The FTA would also allow BMW to offer more engine options and trims, making the 2 Series a mass-premium success.
BMW 3 Series
The 3 Series is BMW’s best-selling sedan worldwide. In India, it is already locally assembled, but imported performance and luxury trims remain expensive. With the FTA, CBU versions like the M Sport Pro could fall from ₹75–80 lakh to ₹50–55 lakh. This would expand the 3 Series’ appeal to enthusiasts who want German engineering without paying ultra-luxury prices. Lower import duties will also help BMW bring in more hybrid and electric 3 Series variants at competitive prices.
BMW 4 Series
The BMW 4 Series coupe and Gran Coupe are style-focused luxury cars that currently feel overpriced due to import taxes. A model costing ₹85–90 lakh today could drop to around ₹55–60 lakh after the FTA. This would make the 4 Series a serious alternative to Mercedes-Benz CLE and Audi A5. Its sporty design, powerful turbo engines, and tech-rich cabin would become far more attractive at this new price point, opening a new lifestyle luxury segment in India.
BMW 5 Series
The BMW 5 Series is a symbol of executive luxury. Imported variants like the 530d or M Sport Pro currently cost close to ₹90 lakh. With reduced duties, these prices could fall to ₹60–65 lakh. This would create intense competition with the Mercedes E-Class and Audi A6. A cheaper 5 Series means more features, larger engines, and premium trims for Indian customers, making executive luxury more affordable than ever.
BMW 6 Series GT
The 6 Series GT is known for space, comfort, and practicality. Currently priced above ₹75 lakh, FTA benefits could push it down to ₹50–55 lakh. This would make it an attractive luxury tourer for Indian families who want both sedan comfort and SUV-like space. With BMW’s refined engines and soft suspension setup, the 6 GT could become a best-seller in the premium family car segment.
BMW 7 Series
The BMW 7 Series is a flagship luxury sedan with unmatched technology and comfort. Today, imported trims exceed ₹1.7 crore. After the FTA, prices could fall to around ₹1.1–1.2 crore. This would significantly reduce the gap between luxury sedans and ultra-luxury cars. Business leaders and celebrities could now choose higher trims and more customization at a much lower cost.
BMW 8 Series
The BMW 8 Series is a luxury sports coupe and Gran Coupe that feels extremely premium. Current prices hover near ₹2 crore for imported variants. Post-FTA, the price could reduce to ₹1.3–1.4 crore, making it a true rival to Porsche and Aston Martin entry models. With its powerful V8 options and stunning design, the 8 Series could finally find a strong buyer base in India.
BMW X1
The X1 is BMW’s most popular compact SUV. Imported versions currently feel overpriced. With FTA benefits, the price could fall from ₹60 lakh to ₹40–42 lakh for higher trims. This would make the X1 far more competitive against the Mercedes GLA and Audi Q3, boosting BMW’s SUV sales significantly.
BMW X2
The sporty BMW X2 is rarely seen in India due to its high import cost. Post-FTA, a model costing ₹70 lakh could fall to ₹45–48 lakh. Its coupe-like design and aggressive stance would attract young buyers who want something different from traditional SUVs.
BMW X3
The X3 is a luxury mid-size SUV with strong demand. Import duty cuts could bring its CBU price from ₹90 lakh down to ₹60–65 lakh. This would increase demand among premium SUV buyers.
BMW X4
The coupe-style X4 is stylish but expensive today. After the FTA, prices may drop from ₹1 crore to ₹65–70 lakh, making it far more appealing.
BMW X5
The X5 currently costs around ₹1.2 crore. Post-FTA, this could fall to ₹80–85 lakh, bringing full-size luxury SUVs into reach for more buyers.
BMW X6
The bold X6 could drop from ₹1.3 crore to ₹90 lakh, increasing its popularity among luxury SUV lovers.
BMW X7
BMW’s largest SUV could drop from ₹1.5 crore to ₹1.05 crore, making it a strong alternative to Range Rover.
BMW i4, i5, i7
BMW’s electric sedans could see a 35–40% price drop, making them far more competitive in India’s growing EV market.
BMW iX, iX1, iX3
These electric SUVs could finally become mainstream luxury EVs, with prices falling by ₹20–40 lakh.
BMW Z4
The Z4 roadster could drop from ₹90 lakh to ₹60 lakh, boosting demand for sports cars.
BMW M2, M3, M4, M5, XM
BMW’s performance cars are heavily taxed today. After the FTA, M models could be ₹30–50 lakh cheaper, making true performance BMWs finally realistic for Indian enthusiasts.
Final Thought
Just like the Golf GTI dropping from ₹50.91 lakh to ₹26 lakh, BMW cars could soon become 40–50% cheaper. The India–EU FTA may completely reshape India’s luxury car market in the next 2–3 years.
