New Delhi. After the implementation of a free trade agreement (FTA) between India and Britain (UK), there will be a tremendous decline in the prices of luxury cars made in Britain in India. Under this agreement, British luxury cars such as Aston Martin and Mini Cooper can range from 25% to 40% in the Indian market. Under the FTA, import duty will be cut from 30% to 50% in the first year on ICE vehicles from Britain. Later, within 15 years this fee will be reduced to only 10%. However, this exemption will be limited to the quota limit of 20,000 cars first and then this quota will be reduced to 15,000 units.
If more vehicles are imported than quota, the fee on them will be 60% to 95% in the first year, which will be reduced from 45% to 50% by tenth year. Thus, only the cars imported in the fixed limit will get more benefits.
If the duty becomes 30% after the free trade agreement is implemented, then the price of mini cooper can come down to ₹ 27.3 lakh, ie about 40% cheaper. If duty is 50%, the price will be ₹ 31.5 lakh. In the future, prices may fall further if there is further reduction in duty.
The price of Aston Martin will be reduced by 2 crores
Luxury sports car brand Aston Martin will also be affected by this agreement. The CIF value of an Eston Martin Vanquish imported into India in 2016 was $ 2,14,607, while in the US it was priced at $ 2,90,000. Now, given the increase in its price, the current CIF price can be estimated at $ 3,20,000 (about ₹ 2.8 crore).
The current price of Aston Martin Vanquish in India is around ₹ 8.85 crore, which includes heavy custom duty. If the duty is reduced to 50%, then its price can come down to ₹ 6.7 crore, that is, the price is possible by up to 24%.
Full discount on electric vehicles
Special concessions have been given for electric vehicles (EVs), hybrid and hydrogen-based vehicles under the Indo-Bitten FTA. If their CIF price is less than £ 40,000, then they will be fully waived. At the same time, cars which cost between £ 40,000 to £ 80,000 will be charged 50% and quota of 400 units have been fixed. In the fifteenth year, this duty will be reduced to 10% and quota will increase to 2,000 units.
