India-EU Trade Deal: Luxury European Cars That Could Get Cheaper

India and the European Union have completed negotiations, and Prime Minister Narendra Modi and the President of the European Commission, Ursula von der Leyen, have locked the trade deal between the two sides. Bringing international attention, the agreement would open massive opportunities for businesses and people, improving ties between the two of the world's largest economies.

Prime Minister Narendra Modi confirmed on Tuesday the signing of the India-EU trade deal.  The agreement is expected to eliminate tariff and non-tariff barriers on over 90 percent of Indian goods. Labour-intensive sectors such as textiles, leather, chemicals, electronics, and jewellery are anticipated to benefit the most, as these industries do not compete with European manufacturers. Furthermore, a major impact of the agreement could be seen on the Indian auto sector.

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Under the agreement, tariffs on cars produced in the EU could decrease to about 40 percent, which may allow companies like Volkswagen, BMW, Mercedes-Benz, Audi, Porsche, Maserati, Skoda, and Volvo to grow within India's rapidly expanding car market.

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Many high-performance and luxury models from three prominent German manufacturers are likely to become more affordable as a result of this agreement. These models include vehicles like the AMG G63, AMG S 63 E Performance, and Maybach S-Class from Mercedes-Benz, M series models, XM SUV, and Z4 roadster from BMW, as well as the Audi Q8/RS Q8.

Additionally, well-known Porsche models such as the 911, Panamera, Macan (ICE), and Cayenne (ICE) that are produced in Europe and brought to India are also expected to benefit from this deal.

Expensive vehicles from Italian supercar manufacturers may experience a decrease in prices once the agreement is implemented. Lamborghini's entire lineup is imported from Italy, which includes models like Urus, Revuelto, and Huracan. Vehicles from Ferrari, Maserati, and Volvo could also see a decline in prices. For companies like Tesla, advantages from the FTA will only emerge after five years if production is relocated to the Berlin factory.