India’s elite luxury auto scene is changing gears just as the EU-India Free Trade Agreement proposes slashing import duties on qualifying European cars. As part of the new agreement, the Indian government could end up reducing the import duty from up to 110% to 40%, especially targeting CBU models above € 15,000 CIF within quotas. The change in the import duties will affect fully imported flagship cars from Germany, the UK, Italy, and beyond. Industry experts expect the new agreement to make these premium automotive solutions more viable for aspiring buyers.
As of now, fully built-up (CBU) European cars face steep levies today – 70% Basic Customs Duty (BCD), 40% Agriculture Infrastructure Development Cess (AIDC), plus 28% IGST and compensation cess, pushing effective rates over 140-170% on CIF value. For instance, a €100,000 (~Rs 90 lakh) car lands at Rs 2.5 to Rs 3 crore ex-showroom after duties. This protects local assembly but inflates prices, limiting imports to ultra-rich buyers. The 40% flat duty simplifies this, adding only ~28% GST/cess afterwards for a total effective tax of ~70-90% — a potential 40-50% cost reduction.
New import duty on SUVs, cars explained
Here’s the current structure of import duty levied on European-built vehicles:
– 70% BCD + 40% AIDC + 28% IGST + 15-22% cess = 140-170% effective on CIF.
This inflates the price of a Rs 1 crore CIF car to Rs 3 crore ex-showroom.
With the new proposal of 40% flat duty + GST/cess (somewhat close to 70-90% total import duty), there is a promise of 40-50% savings. This applies to petrol/diesel imported vehicles, with EVs also coming in the mix later. Initially, the new proposal will allow for a quota of approximately 200,000 units/year.
List of imported European models
Nearly all top-trim European luxury cars arrive via the CBU route. Here’s a comprehensive roundup by brand, focusing on fully imported variants.
Mercedes-Benz:
G-Class: Rs 2.90-4.00 Crores
AMG GT: Rs 2.60 Crore
Maybach S-Class: Rs 2.77 Crore
EQS SUV Maybach: Rs 2.65 Crore.
CIF estimated: Rs 1-1.5 Crore.
BMW:
i7: Rs 2.03 Crore
XM: Rs 2.10 Crore
M8: Rs 2.45 Crore
CIF estimated: Rs 0.8-1 Crore
Audi:
RS Q8: Rs 2.32 Crore
Q8: Rs 1.10 Crore+
Estimated CIF: Rs 0.8-1 Crore.
Porsche
911: Rs 2.00- Rs 3.80 Crore
Taycan: Rs 1.60 Crore
Panamera: Rs 1.70 Crore
Cayenne Turbo GT: Rs 2.70 Crore
Macan GTS: Rs 1.40 Crore
718 Rs 1.20 Crore
Estimated CIF: Rs 0.8-1.5 Crore
Land Rover/Jaguar (JLR CBUs):
Defender top trims: Rs 1.50- Rs 2.79 Crore
Range Rover: Rs 2.60- Rs 4.17 Crore
Range Rover Sport: Rs 1.83- Rs 4.17 Crore)
Discovery: Rs 1.18 Crore
F-Type: Rs 1.10 Crore
Rolls-Royce:
Phantom: Rs 9.50 Crore
Ghost: Rs 6.95- Rs 7.95 Crore
Cullinan: Rs 6.95 Crore
Spectre: Rs 7.50 Crore.
Estimated CIF: Rs 3- Rs 5 Crore
Bentley:
Continental GT: Rs 4.15 Crore
Bentayga: Rs 4.10 Crore
Flying Spur: Rs 3.90 Crore
Estimated CIF: Rs 1.5- Rs 2 Crore.
Aston Martin:
DB12 Rs 4.20 Crore
Vantage: Rs 3.99 Crore
DBX: Rs 3.82 Crore).
Estimated CIF: Rs 1.5- Rs 2 Crore.
Lamborghini:
Temerario: Rs 6 crore
Revuelto: Rs 8.89 Crore
Urus Rs 4.18 Crore
Estimated CIF: Rs 1.2- Rs 3.5 Crore.
Ferrari:
Roma: Rs 3.80 Crore
SF90: Rs 7.50 Crore
Purosangue SUV: Rs 5.50 Crore
Estimated CIF: Rs 1.5- Rs 3 Crore.
Price impact table
With the adjusted prices, here are the approximate prices of some of these popular European imports:
– Mercedes G-Class: Current price: Rs 2.90- Rs 4.00 crore, New price: Rs 2.00- Rs 2.70 crore
– Land Rover Defender 130: Current price: Rs 1.7- Rs 2 crore, New price: Rs 1.15 crore
– Porsche 911: Current price: Rs 2.00- Rs 3.80 crore, New price: Rs 1.30- Rs 2.60 crore
– BMW i7: Current price: Rs 2.03 crore, New price: Rs 1.40 crore
– Audi RS Q8: Current price: Rs 2.32 crore, New price: Rs 1.60 crore
– Land Rover RR: Current price: Rs 2.60- Rs 4.17 crore, New price: Rs 1.80- Rs 2.90 crore
– Rolls-Royce Ghost: Current price: Rs 6.95- Rs 7.95 crore, New price: Rs 4.80- Rs 5.50 crore
– Bentley Bentayga: Current price: Rs 4.10 crore, New price: Rs 2.80 crore
– Lamborghini Urus: Current price: Rs 4.18 crore, New price: 2.90 crore
– Ferrari Purosangue: Current price: Rs 5.50 crore, New price: Rs 3.80 crore
Note that these are approximate prices and are subject to change owing to the manufacturer’s decision, as the price adjustments also depend on the rest of the market conditions.
In a recent report, it was noted that Mercedes-Benz India has focused on price increases, not cuts. MD & CEO Santosh Iyer announced quarterly hikes starting January 2026 (up to 2% initially) due to rupee depreciation against the euro (Rs 89 to Rs 104-105), rising costs, and logistics, offsetting any duty relief. Iyer noted a 10-15% cost-price gap, opting for “dynamic pricing” to avoid demand shocks, with no mention of passing duty savings to buyers.
“Mercedes-Benz welcomes the Indo-EU FTA as it is a historic achievement,” Iyer told FinancialExpress.com. “We have always advocated free trade, as it brings down trade barriers, leverages the mutual strengths of global economies, and mitigates supply chain uncertainties. However, with more than 90% of Mercedes-Benz India’s sales volume comprising ‘Made in India’ locally produced models and approximately only 5% of sales coming via CBU imports from the EU, we do not foresee any price reduction for Mercedes-Benz vehicles from the FTA in the foreseeable future,” he added.
Hence, price adjustments for imported vehicles from the EU may totally depend on whether the manufacturers want to pass on the benefits to their customers. The challenging global market conditions, along with the rest of the geopolitical situations developing elsewhere, may affect the supply chain and could lead to no major differences for aspirational buyers.
