India-UK FTA Impacts Luxury Car Market

The anticipation of the India-UK Comprehensive Economic and Trade Agreement (CETA), set to be signed soon, has unexpectedly affected the luxury car industry. With the agreement proposing a significant reduction in import duties on cars from 75-125% to just 10%, many affluent customers are postponing or canceling their orders, hoping to benefit from the lower duties.

Dealers Face Challenges Amid Uncertainty

Dealers express frustration over the situation, as the uncertainty around the timeline for duty reductions and potential annual quotas complicates their sales strategies. "It's creating a bad name for the Indian market," shared a dealer, highlighting how brands might redirect limited production to other markets due to the current hesitation among buyers.

Buyers Await Clarity on Future Prices

Despite the initial excitement, the rush to delay purchases is moderating as dealers provide more clarity. They advise customers that waiting might not necessarily lead to savings, considering annual price increases and the rupee's depreciation against the pound. "The trade deal's implementation could take about a year, with gradual duty reductions," explained a dealer, suggesting that immediate purchases might still be advantageous.