Luxury Cars in India Could Drop Over Rs 25 Lakh – Why Prices May Fall

Bottom line up front: Imported luxury cars from Europe may become up to Rs 25 lakh cheaper in India after the government trims import duties under the upcoming India‑EU free trade deal.

Design & Looks

European manufacturers are known for sleek, timeless styling. The BMW 5 Series, Mercedes‑E Class and Audi A6 all feature clean lines, premium materials and optional bespoke interiors that appeal to Indian buyers who want a status symbol without compromising on craftsmanship.

Performance & Mileage

These models pack turbo‑charged inline‑four or six‑cylinder engines that deliver strong acceleration while staying reasonably fuel‑efficient for the segment. Expect real‑world mileage of 12‑15 km/l depending on engine size and driving conditions.

Price & Rivals

Right now, a base‑spec BMW 5 Series costs around Rs 71 lakh, Mercedes‑E Class about Rs 74 lakh and Audi A6 roughly Rs 68 lakh. The duty reduction—from up to 110% to 40% on cars priced above €15,000—could shave more than Rs 25 lakh off these numbers, making them competitive with locally assembled premium models like the Skoda Superb.

FAQ

• What duty rate will European luxury cars face after the agreement? The duty is expected to settle at 40% for cars priced above €15,000, down from the current 110%.
• How much can I save on a Mercedes‑E Class? Rough estimates suggest a price cut of Rs 25‑30 lakh, bringing the on‑road price closer to Rs 45‑50 lakh.
• Will the lower price affect after‑sales service? No. Service networks and warranty terms remain unchanged; the savings come purely from reduced import taxes.

What do you think about the upcoming price drop? Share your thoughts in the comments below.

Source: Read Official News