Indian car buyers have reason to rejoice. The recently signed India-European Union Free Trade Agreement (FTA) is set to bring down import duties on European luxury and high-end vehicles, making some of the most coveted cars in the world significantly more affordable. From Mercedes-Benz sedans to BMW SUVs, Ferrari sports cars to Porsche performance models, and select Volkswagen imports, prices are expected to drop sharply—sometimes by nearly half.
With tariffs on fully imported European cars potentially falling from over 100% to as low as 10%, aspirational buyers could finally get behind the wheel of their dream cars without paying the exorbitant premiums that have long kept them out of reach. In this article, we break down the estimated post-FTA prices of top luxury and premium European vehicles in India, model by model.
1. Mercedes-Benz Prices After India-EU FTA
Mercedes-Benz enthusiasts in India have reason to celebrate. Following the India-European Union Free Trade Agreement (FTA), import tariffs on European luxury cars are expected to fall significantly, slashing prices across the Mercedes lineup.
Currently, import duties on fully imported European cars reach up to 110%. Under the FTA, this could drop to as low as 10% over time, making luxury models far more affordable for Indian buyers.
Key Mercedes Models and Expected Price Drops:
- Maybach SL 680: Current price ₹4.35 crore → Post-FTA: ₹2.28 crore
- AMG G-Class: Current price ₹3.85 crore → Post-FTA: ₹1.52 crore
- AMG GT: Current price ₹3.34 crore → Post-FTA: ₹1.6 crore
Mercedes-Benz currently offers 35 models in India, from the entry-level A-Class limousine starting at ₹44.46 lakh to the ultra-luxury Maybach SL 680. Analysts predict that these price reductions will increase demand for new luxury cars, potentially impacting the pre-owned luxury market as well.
With the FTA in effect, buying a Mercedes in India is set to become more attainable for aspirational buyers.
2. BMW Cars Price After India-EU FTA
BMW lovers across Indian metros can look forward to big savings as the India-EU Free Trade Agreement (FTA) brings down import duties on European luxury vehicles.
Currently, import tariffs on fully built BMW models can reach 110%. Post-FTA, duties could fall to as low as 10%, significantly reducing showroom prices.
Popular BMW Models and Projected Prices:
- BMW 3 Series LWB: ₹60.45 lakh → ₹31 lakh
- BMW X1: ₹50.6 lakh → ₹33 lakh
- BMW 2 Series Grand Coupe: ₹45.3 lakh → ₹31 lakh
BMW sells more than 18,000 cars annually in India and offers 22 models, including sedans, SUVs, and coupes. Analysts suggest the tariff reduction will boost sales of new luxury cars while reshaping the pre-owned BMW market.
For many urban buyers, owning a BMW could become far more achievable without compromising on luxury or performance.
3. Ferrari Prices After India-EU FTA
Ferrari buyers in India are in for a major win. The India-EU Free Trade Agreement (FTA) is set to drastically reduce import duties, making iconic Italian sports cars significantly more affordable.
Ferrari Models and Expected Price Cuts:
- Purosang SUV: ₹9.93 crore → ₹5.19 crore
- 296 GTB: ₹5.11 crore → ₹3.41 crore
- Roma: ₹3.56 crore → ₹2.37 crore
Ferrari sells six models in India, including SUVs and sports cars. With the FTA, buyers could save crores on the cost of a new Ferrari, making the ultra-luxury segment more accessible.
Industry experts also note that the reduction in prices may impact the pre-owned luxury car market, as new Ferraris become relatively more affordable.
4. Porsche Prices After India-EU FTA
New Delhi, January 2026 – Porsche buyers in India are set to enjoy major savings as the India-European Union Free Trade Agreement (FTA) cuts import duties on European luxury vehicles.
In 2024, Porsche India recorded a historic surge in sales, with SUVs accounting for 71% of the brand’s total sales. Sports cars like the Porsche 911, 718 Boxster, and Cayman also saw a 95% year-on-year increase in sales.
Porsche Models and Expected Price Reductions:
- Porsche 911: ₹2.31 crore – ₹4.39 crore → Post-FTA: ₹2.67 crore
- Porsche Panamera and Taycan (combined): Various models → Prices expected to reduce significantly
- Porsche Macan and Cayenne: Partially imported units to see substantial drops.
While Porsche’s SUVs dominate sales, luxury sports cars will become more accessible thanks to tariff cuts. Analysts predict that this could boost demand for new Porsches in India, while also affecting the pre-owned luxury car market.
5. Volkswagen Prices After India-EU FTA
Volkswagen fans in India can expect substantial savings on imported models following the India-EU Free Trade Agreement (FTA), which drastically reduces tariffs on fully built European cars.
While most Volkswagen models are assembled locally and do not benefit from import duty cuts, high-end imported variants will see sharp price reductions.
Imported Volkswagen Models and Expected Prices:
- Golf GTI: ₹50.91 lakh → ₹26 lakh
- Tiguan R-Line: ₹45.73 lakh → ₹23–26 lakh
Locally assembled models such as the Polo and Taigun will not see significant changes. Analysts note that the FTA strengthens Volkswagen’s position in the premium imported car segment while keeping its locally manufactured cars competitive in the mass market.
6. Škoda Cars Prices After India-EU FTA
New Delhi, January 2026 – The India-EU Free Trade Agreement (FTA) brings good news for Škoda buyers in India. While most Škoda cars are manufactured at the Chakan plant in Pune, imported variants will see significant price reductions.
Imported Škoda Models and Expected Price Cuts:
- Octavia VRS: ₹50 lakh → Reduced significantly post-FTA
- Superb: ₹54 lakh → Reduced significantly post-FTA
Popular locally assembled models such as the Škoda Kushaq and Slavia are unaffected, as they already avoid import duties. With fewer imported units in India compared to Europe, these tariff cuts will mainly benefit premium buyers looking for performance-oriented Škoda cars.
7. Renault Prices After India-EU FTA
Renault buyers in India could see significant savings on imported models following the India-European Union Free Trade Agreement (FTA). While most Renault vehicles, including the Kiger, Triber, Kwid, and Duster, are produced in India, imported models will benefit from the tariff reduction.
Imported Renault Models Affected:
- Specific imported variants will experience price drops (exact models not specified, but high-end imports will be cheaper)
With Renault selling around 37,900 cars annually in India, these changes primarily affect premium or imported variants, while locally manufactured cars remain competitively priced. Analysts expect the FTA to make imported Renaults more attractive to buyers seeking premium features without paying full import duties.
