The proposed India-European Union (EU) Free Trade Agreement (FTA) could bring a major shift for luxury and premium car manufacturers. Once implemented, the agreement is expected to reduce import duties on European-made vehicles, potentially benefiting several brands, including Italian sports car giant Ferrari. While the deal is likely to come into effect by late this year or early 2027, Ferrari has already begun accepting bookings based on anticipated revised pricing.
Currently, fully imported cars (CBUs) in India attract import duties of around 100–110 percent, including customs duties and additional taxes. However, the India-EU FTA could significantly alter this structure. Reports suggest that vehicles priced above 15,000 Euros (approximately ₹16.83 lakh) may initially see import duties reduced to 30–40 percent, with rates eventually dropping further to as low as 10 percent over time.
Brands that rely on importing CBU models into India, such as Ferrari and Range Rover, are expected to benefit the most from this development. At present, the potential tax relief appears to apply primarily to Ferrari’s petrol-powered models, as the FTA clearly outlines duty reductions for petrol vehicles, while the framework for hybrid cars remains uncertain.
Customers interested in Ferrari’s petrol lineup could see price reductions of nearly 30 percent. For example, the Ferrari Purosangue, currently priced at ₹10.50 crore (ex-showroom), could see its price fall to around ₹7.35 crore after the FTA comes into effect. This would translate into a substantial saving of approximately ₹3.15 crore.
Similarly, the Ferrari 12Cilindri Spider may become significantly more affordable. Its current price of ₹9.15 crore could drop to nearly ₹6.40 crore, offering buyers savings of around ₹2.75 crore.
The Ferrari 12Cilindri Coupe could also witness a notable price revision. Its current ₹8.50 crore price tag may reduce to approximately ₹5.95 crore, resulting in savings of nearly ₹2.55 crore for buyers.