Limited gains for luxury cars

THE INDIA-EUROPEAN UNION free trade agreement (FTA) is unlikely to immediately bring down prices of most luxury cars, as the structure of the deal protects the domestic auto industry while offering limited concessions to high-end imported models.

- NITIN KUMAR

While the agreement provides for a sharp reduction in import duties on European cars, the benefits will largely accrete to a narrow set of fully imported luxury vehicles rather than the bulk of models sold by brands such as Mercedes-Benz, BMW, Audi and Jaguar Land Rover, which are largely assembled locally. Nearly 90% of the 51,000-52