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India-EU Trade Deal Explained: Which European Car Brands Benefit The Most
The historic India-European Union trade deal has now been finalised, and one of the biggest talking points is the impact it will have on the Indian automotive industry. With this agreement, Indian buyers will be able to purchase European cars at significantly lower prices than before. Here's a closer look at the brands that benefit the most from this landmark trade deal.
About India-EU Trade Deal
Earlier, European cars imported into India via the CBU (Completely Built Unit) route attracted import duties of up to 110%. Under the new agreement, duties have been reduced to 40%, with a further reduction to 10% planned over the next five years.
This FTA applies to vehicles priced above €15,000 (approximately ₹16.5 lakh). An annual quota of 2,50,000 units has also been introduced. Importantly, electric vehicles (EVs) are excluded from this agreement for the first five years, after which they may be included.
Performance and Elite Brands
All high-performance and ultra-luxury brands will benefit massively from the new trade deal. Most of these manufacturers do not have production facilities in India and rely entirely on CBU imports. Brands such as Lamborghini, Ferrari, Bentley, Rolls-Royce, Maserati, and Porsche are going to be the biggest beneficiaries.
Key models benefited
| Brands | Cars Benefited |
| Lamborghini | Urus SE, Revuelto, Temerario |
| Ferrari | 296 GTB/GTS, SF90 Stradale, Purosangue, Roma |
| Porsche | 911 (all variants), 718 Cayman/Boxster, Panamera, Cayenne (ICE) |
| Bentley | Bentayga, Continental GT, Flying Spur |
| Rolls-Royce | Ghost, Phantom, Cullinan |
| Maserati | MC20, Grecale, GranTurismo |
Luxury Brands
India's best-selling luxury brands, BMW, Mercedes-Benz, and Audi, already operate manufacturing facilities in India. However, several high-performance and flagship models are still imported from Europe as CBUs. Reduced import duties could make these enthusiast-focused models far more attainable.
Models that could see major price drops
| Brands | Cars Benefited |
| BMW | M2, M4 Competition, M5, M8 Coupe, Z4 Roadster, XM |
| Mercedes-Benz | AMG G63 (G-Wagon), AMG SL55, AMG GT 63 S E-Performance, select S-Class Maybach units, CLE 53 AMG |
| Audi | RS Q8, RS6 Avant, RS5 Sportback, Q8 (CBU variants) |
Regular Brands for Enthusiasts
Brands like Volkswagen, Skoda, and Land Rover also stand to benefit significantly from the agreement. Despite having manufacturing operations in India, these brands import select premium and performance-oriented models from Europe in limited numbers. With lower duties, manufacturers may also increase CBU allocations for the Indian market.
Expected beneficiaries
| Brand | Cars benefited |
| Volkswagen | Golf GTI, Tayron, Touareg |
| Skoda | Octavia RS, Superb, Kodiaq RS |
| Land Rover | Defender series |
All these vehicles could become more affordable with this deal. Hence, they pose a serious threat to locally assembled luxury SUVs and performance cars that offer similar performance.
What This Means for the Indian Auto Market
The India-EU trade deal has effectively opened up the Indian automotive market to a wider range of European products. Increased imports will intensify market competition and diversify buyer choices.
With European cars becoming more affordable, Indian consumers will gain access to world-class engineering, performance, and safety standards at more realistic price points. At the same time, established domestic and Japanese manufacturers will need to improve their product quality, technology, and value offerings to remain competitive.
Ultimately, this agreement is expected to raise the overall standard of the Indian automobile industry, with indian buyers emerging as the biggest beneficiaries of this historic trade deal.
Note: Prices and benefits are indicative and subject to brands and government
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