New Delhi, July 15: With the comprehensive economic and trade agreement (CEPA) between India and Britain coming into effect from Wednesday, the prices of certain luxury cars manufactured in Britain are expected to significantly decrease in the Indian market. The reduction of the import duty from up to 110 percent to 30 percent will provide substantial relief to high-end car buyers.
Market sources estimate that the prices of fully imported vehicles from prominent British luxury car manufacturers such as Rolls-Royce, Aston Martin, McLaren, and Jaguar Land Rover could drop by 20 to 25 percent. Depending on the model, savings of between ₹1 crore to ₹3 crores per vehicle are anticipated.
However, this duty concession does not apply to all vehicles coming from Britain. The benefit will only be available for cars imported within the tariff rate quota (TRQ) specified by the central government. This concession will apply to 10,000 fully manufactured petrol and diesel cars in the first year.
Additionally, there are plans to gradually increase this quota over the next 15 years while also reducing the import duty in phases from 30 percent to 10 percent.
This indicates a potential increase in demand for British luxury cars in the Indian market in the future. However, the concession will not immediately apply to electric vehicles manufactured in Britain. Reductions in duties on EVs will only come into effect from the fifth year after the agreement is implemented. The central government has clarified that this decision was made with the intention of protecting the domestic electric vehicle manufacturing industry.
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