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EU Trade Deal Could Slash Luxury Car Prices in India, Says BMW CEO

The President and CEO of BMW Group India stated that a proposed free trade agreement with the European Union could significantly help grow India's luxury car market by reducing customs duties on imported vehicles. He emphasized that the luxury segment currently represents only about one percent of India's total passenger vehicle market, indicating substantial room for expansion. A reduction in duties on Completely Built Units (CBUs) would make high-end models more accessible to consumers and allow automakers to introduce a wider range of global products. The CEO framed the potential agreement as a historic, mutually beneficial step that would boost trade and technology exchange without negatively impacting mass-market car manufacturers.

Key Points: India-EU FTA May Cut Luxury Car Import Duties: BMW India

  • FTA could lower import duties on cars
  • Luxury segment is only 1% of Indian market
  • Duty cuts would make CBU models more accessible
  • Policy seen as win-win for India and EU
  • Would allow broader model portfolio introduction
2 min read

India-EU FTA duty cuts could boost India's small luxury car market: BMW India CEO

BMW India CEO says lower customs duties under a proposed India-EU free trade agreement could expand the small luxury car market, benefiting consumers.

"There is a strong and positive signal of confidence in India's long term growth story. - Hardeep Singh Brar"

New Delhi, Jan 26

Lower customs duties on imported cars under the proposed India-EU free trade agreement could help expand India's small luxury car market, BMW Group India President and CEO Hardeep Singh Brar said on Monday.

Brar said the luxury car segment in India currently makes up only about one per cent of the overall passenger vehicle market, leaving significant room for growth if import duties are eased.

"There is a strong and positive signal of confidence in India's long term growth story. India today is not just a large market, but a future ready economy backed by reforms and policies focused on building a globally competitive ecosystem," he stated.

He said the India-EU Free Trade Agreement would be a historic step for both sides, as it would boost trade and encourage greater exchange of technology and innovation.

"The India EU Free Trade Agreement would be a historic milestone benefiting both sides by expanding trade and enabling deeper exchange of technology and innovation," Brar mentioned.

From the automotive industry's point of view, Brar said the agreement should include balanced and mutually beneficial provisions that support demand for luxury vehicles and strengthen supply chains, especially at a time of global geopolitical uncertainty.

Brar said a reduction in customs duties on completely built units, or CBUs, would make imported luxury cars more accessible and help widen the market in India.

At present, CBUs account for around five per cent of BMW's total sales in the country.

"If customs duties on completely built units are reduced, it would help expand the luxury car market in India," he added.

"While CBUs currently account for about 5 per cent of our sales, such a framework would allow us to broaden our product portfolio, introduce globally popular models and test new offerings," Brar noted.

Brar noted that easing duties on luxury cars would benefit consumers without affecting mass-market carmakers, as luxury vehicles form only a small share of India's passenger vehicle segment.

"This would make the policy a win-win for both India and the European Union," he stated.

- IANS

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Reader Comments

P
Priya S
While boosting luxury imports is good, I hope the FTA also strongly focuses on getting European companies to manufacture more in India. 'Make in India' should be the priority, not just easier imports. We need those jobs and tech here.
R
Rohit P
Great news for car enthusiasts! Finally might be able to afford my dream BMW without the crazy import tax. Hope this agreement gets signed soon. 🚗💨
S
Sarah B
Interesting perspective. The CEO makes a fair point that it won't hurt mass-market carmakers. A 1% segment can grow without disrupting Maruti or Tata. Smart economic diplomacy.
V
Vikram M
More luxury cars on our already congested roads? We should be incentivizing electric vehicles and public transport, not making it easier to buy expensive petrol guzzlers. The policy focus feels misplaced.
K
Karthik V
Strong move. This FTA is about much more than cars—it's about integrating with a major economic bloc. If it helps position India as a future-ready economy and brings in innovation, it's worth it. The luxury car bit is just one visible benefit.

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