Do you dream of owing a BMW 7 series or a Rolls Royce Ghost every single day? Of course, you do. Well, then we have some really good news for you.
The proposed India-EU FTA (free trade agreement) is actively seeking the removal of import duties on automotive products. If the agreement goes through, we can expect a drastic reduction in prices of imported luxury cars by as much as 38%. In essence, this means a BMW 7 Series, which now cost about round about 84 lakhs, will get cheaper by around 30 lakhs!
This price reduction is expected on cars that are imported in form of a CBU and only from the European countries. So don’t expect a Mitsubishi EVO to shed its price.
Is the BMW 7 series a bit too steep for your wallet? Interested in the C Class ? There is some relief for you as well. The proposed FTA is also seeking a reduction of 10% on CKD imports as well.
But every coin has 2 sides. So there is a negative impact of this FTA as well. An internal report of the European Commission revealed that the FTA would gravely affect the India’s car industry. 4% of India’s automobile production (Rs 6,000 crore) would move out of the country and would be replaced by cars made in Europe.
So what do you think? Should India sign this FTA?
Source: HindustanTimes.com
ohh and the Mercedes S-Class which is localy assmbled when the 10% duty and import agreement signed than the price of the Mercedes S-Class will down to so 65 Lakhs
Yes!!! , a Big Yes!! when it signed than we will see much of Luxury and High- end cars in India and CKD cars wil also down with 10% and than such cars as, I say all the cars i know:
Audi Q5
Audi A4
Audi A6
BMW X1
BMW 3 Series
BMW 5 series
VW Jetta
Vw Passat
Mercedes C Class
Mercedes E Class
BMW X3 (new model soon assembling)
Skoda Superb
Toyota Fortuner
Chevrolet Captiva
and maybe more
will also seen more on roads!!!
and more Brands will come here and cars as Sporty Hatchbacks and Stationwagons will launch here and come on the streets!!
and skip that 4% that is nothing! cars such as A-Stars, Alto’s and onother Maruti Cars is not very!, there are millions of them!! you see that cars every day!! it’s now time for step towards!!
I’m totally for the India-EU FTA. And just to clarify, Cars are only one aspect of the India-EU FTA. Right now all goods imported by india (eg. cars) from europe are levied a huge duty to protect our local market. Similarly, pharma products exported to the EU by Indian companies are levied a heavy duty by them to protect their interests. What the India-EU FTA aims to do is remove these duties so that there is a level playing field for companies in both India and Europe and that will only lead to better competition between companies of both companies and it is the consumers who finally win. In the case of Cars, the Europeans make much much much better cars than we do. It is high time Indian car manufacturers pull up their socks and improve their quality instead of producing relatively inferior quality products and sit behind the shield of duties. As for the pharma industries in India, their cost of manufacturing is much lower than their EU counterparts so the revenues and market share in Europe is bound to increase substantially. This is basically a deal of give and take and the negotiators are trying to ensure that everybody wins.
Of course yes . let the war begin and let Indian automakers raise up their quality level . It needs to improve a lllloooottttt .
India Go Ahead n sign it ! our cars will be exported too think about that !
n imported beauties will run on Indian roads ! SIGN it !
IT SHOULD BE SIGNED ! Go Ahead India ! progress !
dont allow this to happen this will decrease set up of new plants by these companies in india
The impact of this deal would be net negative. Premium car manufacturing would move out of our country. I don’t think we want to become just a small cars manufacturing nation.
Maybe the deal will make sense after 4-5 years when we have matured in all the car segments but not now.
@MaN … narrow minded comment. As i said in a previous comment, India stands to gain twice fold.
We as customers get great cars at great prices.
We , as Indian Auto Industry, create more jobs as Europe is hungry for small cars and we are the best at that. Our very our companies send thousands of small cars, manufactured in India, to Europe every year [E.g. Tata, Maruti Suzuki, Hyundai]. This FTA will help them improve their numbers and also help European car companies to buy and rebadge our cars [E.g. Nissan selling A-Star, VW also plannig for the same]
Think about it. Protectionism is already killing us as customers, thanks to the half heart’d, over priced big cars coming from the Indian Auto Companies(Tata Aria, MS Kizashi etc). Why not see the other side of the coin and then decide!
LEVEL PLAYING FIELD should be there. Huge excise duty is a bad means of PROTECTIONISM which is against the free market principle. Let every one COMPETE.. and we consumers are the ultimate BENEFICIARIES. No one is going to perish, for sure. Only, their standards will be raised, ultimately.
I totally agree with “MaN”. The FTA agreement should not be signed as it would help the European markets to strictly invade India’s economy..those @stars or micras or the i10 would not be able to balance the industry..it would have an adverse effect on employment and national revenues..
Being Indian I would strictly oppose this proposal of EU for removal of import duties which they want this to be part of the free trade pact, which is heavily lobbied by european automobile manufacturers. The proposal is for their benefit.
If any day it happens, India will loose manufactiring bases of all laxury car makers. And every car maker will start exporting them directly from their own manufacturing bases in Europe which are very cost effective by having high volumes. This will kill our auto ancillaries, employment in auto industry. These brands will be in India just to sell their products made in Europe.
In return what country gains..?? just cars..?? at what and whose cost..??
Let the rich people pay some extra tax which creates base for Indian auto industry and employment to people, on the other side the tax becomes income to the Government.
Yes India should proceed with this agreement if ever Indian roads have to see more of these beauties.
Narrow minded EU report . Think of all the Micra’s, A-Star’s & i10 that would roll out of India into Europe. That’ll easily cope up for the loss in the domestic market.