Luxury Cars Like Ferrari Purosangue, 12Cilindri May See Major Price Reduction

Luxury car prices in India are expected to see significant reductions following the proposed India–EU Free Trade Agreement (FTA), with high-end Italian automaker Ferrari among the brands likely to benefit from sharply lower import duties on European vehicles.Under the current tax structure, completely built units (CBUs) imported into India attract steep duties of around 100–110 per cent, significantly inflating the final retail price of luxury and super-luxury vehicles.

However, the proposed FTA is expected to reduce import duties on cars priced above €15,000 (approximately ₹16.8 lakh), initially bringing them down to around 30–40 per cent, with the possibility of further reductions to nearly 10 per cent over time.The potential tariff revision is expected to make several premium European models more accessible in the Indian market.

Brands such as Ferrari, Range Rover, and other high-end manufacturers importing fully built vehicles are projected to benefit the most from the proposed changes, particularly in their petrol-powered model lineups, where tariff clarity is currently stronger compared to hybrid variants.One of the most notable potential price adjustments is expected in Ferrari’s SUV lineup. The Ferrari Purosangue, currently priced at around ₹10.50 crore (ex-showroom), could see its cost fall to approximately ₹7.35 crore after the FTA takes effect.

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This represents a potential reduction of up to ₹3.15 crore, depending on the final duty structure implemented at the time of enforcement.The FTA is expected to come into effect later this year or by early 2027, subject to final negotiations and ratification. Once operational, it could significantly reshape the luxury automobile market in India by lowering entry barriers for imported performance vehicles and expanding the premium segment’s customer base, while also influencing pricing strategies of global automakers operating in the country.

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