Are Luxury Cars Really Getting Cheaper? – How the India‑Europe FTA Impacts Prices

Bottom Line Up Front

The new free‑trade agreement between India and Europe will trim import duties, but most premium models will keep their current price tags.

Design & Looks

Luxury brands are still focusing on premium styling. The 2024 Mercedes‑Benz C‑Class, for example, gets a sharper front grille and updated LED headlights. BMW’s refreshed 5 Series sports a sleeker roofline, while Audi’s A6 adds a more aggressive bumper.

Performance & Mileage

Performance figures stay strong across the board. These cars combine refined engines with respectable fuel economy, making them attractive even after the duty cut.

Price & Rivals

The duty reduction means import costs drop by up to 10 %. However, manufacturers have chosen to keep MSRP steady, using the margin to add features or improve dealer incentives. As a result, buyers may see better equipment levels rather than lower sticker prices.

For comparison, the Lexus ES and Jaguar XF, which also fall under the agreement, follow the same pattern – no headline price cut, but richer standard packages.

FAQ

Will the mileage of these luxury cars improve after the FTA?

No. Engine efficiency is set by the manufacturer; the trade deal only affects taxes, not fuel consumption.

Are any luxury models actually cheaper in India now?

Only a few entry‑level models, like the Audi A3 and BMW 1 Series, have seen modest price drops. Core mid‑size sedans stay at their pre‑FTA prices.

Is it worth buying a luxury car now or wait for further cuts?

If you want extra features at the same price, buying now makes sense. If you’re waiting solely for a lower price, the market may stay flat for the next 12‑18 months.

What do you think? Share your thoughts in the comments below.

Source: Read Official News