The India-EU FTA was in talks for the last couple of years. However, the negotiations have finally come to an end, and the deal was concluded yesterday. Being called the 'Mother of all deals', the India-EU FTA also impacts the prices of cars that come from Europe to India. Under the pact, the import duty comes down substantially, but only for cars landing in India as CBU (Completely-Built Units). The big buzz on social media is around the Land Rover Defender. The big-brawny SUV is highly-loved by the Indian audience, and it indeed is the carmaker's best-seller in the country. When the India-UK FTA came into effect, other Range Rover SUVs received a price cut, but not the Defender, as it is manufactured in Slovakia. Hence, it is now that the Land Rover Defender will attract a tariff reduction.
Land Rover Defender Price Structure
The Land Rover Defender 110 is on sale in India at an ex-showroom price of Rs 1.03 Crore. This includes a total import duty of 110 per cent on the BCF (Basic Cost and Freight), and 40 per cent GST is charged on the final amount. The Defender carries a BCF of around Rs 35 lakh. Currently, an import duty of 38.5 lakh (110 per cent) is charged, and a sum of roughly Rs 29 lakh as GST is imposed.
| Scenario | Base Price (Rs lakh) | Import Duty (Rs lakh) | GST (Rs lakh) | Ex-Showroom Price (Rs lakh) |
| 110% Import Duty | 35 | 38.5 | 29.4 | 102.9 |
| 40% Import Duty | 35 | 14 | 19.6 | 68.6 |
| 10% Import Duty | 35 | 3.5 | 15.4 | 53.9 |
Also Read - India-EU FTA Makes These Cars Cheaper, But There's A Catch - Check List
Price Reduction With Reduced Tariffs
Based on the new import duty structure of 40 per cent, the Defender will attract a sum of roughly Rs 14 lakh, and further, it will carry a GST amount of Rs 19.6 lakh. It brings the Land Rover Defender's ex-showroom price to Rs 68.6 lakh. In the final stage of the India-EU FTA, when the import duty will come down to just 10 per cent, the Defender will carry an ex-showroom price of Rs 53.9 lakh.
Also Read - India-EU FTA: What It Really Means For Car Buyers- Explained
Cheaper Than Toyota Fortuner?
Sadly, the Fortuner remains slightly cheaper than the expected price of the Land Rover Defender with just the 10 per cent tariff slab. The Toyota Fortuner prices currently start from Rs 34.16 lakh and go up to Rs 49.59 lakh
Will India-EU FTA Really Makes Cars Cheaper?
Yes, the agreement will make the car cheaper, but there's a catch. Earlier, the duty stood at 110 per cent, while it has been reduced to 40 per cent now. In the final stage, it will further come down to 10 per cent. However, this new slab will come into effect gradually in a phased manner. In fact, this is only applicable for a small quota of cars imported to the country - 2.5 lakh units annually. Moreover, the reduced tariff will only CBU models. The India-EU FTA's implementation could take over a year, and the new prices could only come into effect by 2028.