- India-EU FTA will reduce import duties on European cars, benefiting automakers including Ferrari
- Import duties on cars over 15,000 Euros could drop from 100% to 30-40% initially then to 10% eventually
- Current FTA benefits apply mainly to petrol Ferraris while hybrid car duty structure remains uncertain
India-EU Free Trade Agreement (FTA) is expected to benefit multiple automakers by reducing import duties on European made cars. The list of brands expected to benefit includes the Italian sports car manufacturer Ferrari. While the trade deal is expected to become operational later this year or in early 2027, Ferrari has already started taking bookings for its cars at a significantly lower price.
Under the current tax structure in India, completely built units (CBUs) attract high import duties of around 100-110 per cent, including basic customs duty and additional levies. This could change significantly with the upcoming India-EU Free Trade Agreement (FTA). Once implemented, import duties on cars priced above 15,000 Euros (approximately Rs 16.83 lakh) are expected to drop to 30-40 per cent initially, and could eventually fall further to just 10 per cent over time.
Also Read: Government Plans New FASTag Category For Special Vehicles: Report
As mentioned earlier, the change in tax structure will benefit brands like Range Rover, Ferrari, and others importing CBUs. At present, these benefits are limited to Ferrari's petrol-powered models. This is primarily because the FTA clearly defines tax reductions for petrol vehicles, while there is still uncertainty regarding the duty structure for hybrid cars.
Buyers looking at Ferrari's petrol lineup can currently take advantage of price cuts of up to 30 per cent. For instance, the Ferrari Purosangue, which is currently priced at Rs 10.50 crore (ex-showroom), could see its price drop to around Rs 7.35 crore post-FTA, offering a massive saving of Rs 3.15 crore.
Similarly, the Ferrari 12Cilindri Spider is expected to become more accessible. Its current price of Rs 9.15 crore could reduce to nearly Rs 6.40 crore, translating into savings of Rs 2.75 crore. The Ferrari 12Cilindri Coupe could also witness a significant price correction, dropping from Rs 8.50 crore to around Rs 5.95 crore, making it cheaper by Rs 2.55 crore.