NEW DELHI: If you have been eyeing a high-end imported car, the wait might soon be over. Reports surfacing on Monday indicate that India is preparing to cut import taxes on European cars, a move that could slash prices by lakhs of rupees.
The Numbers Currently, importing a luxury car into India is an expensive affair. A car valued over $40,000 attracts a 110% customs duty, essentially doubling its cost. Under the new proposal for the India-EU Trade Deal, India has offered to reduce this duty to 40%.
- Current Scenario: A ₹50 lakh car costs over ₹1 crore after tax.
- Future Scenario: The same car could be significantly cheaper, making luxury mobility accessible to a wider aspiring class.
The Electric Advantage This policy could also be the gateway for more advanced Electric Vehicles (EVs) to enter Indian roads. European manufacturers have hesitated to launch their latest EV models due to the high tax structure. A reduced tariff regime would make business viable for them, offering Indian consumers access to world-class green technology.
While the timeline depends on the final signing of the Free Trade Agreement, the intent from the government is clear: India is ready to open its doors, provided it gets reciprocal benefits for its own industries in Europe.
