Mercedes - Business Outrank

The new India-UK Free Trade Agreement (FTA) received widespread praise for its role in enhancing bilateral trade relations. The deal between India and the UK will not lead to reduced car prices for Indian consumers during the near future according to luxury automakers BMW and Mercedes-Benz. The India-UK FTA includes a five-year plan to decrease British luxury car import duties from 60–100% to 10% but only for a limited quota of 46,200 vehicles. The agreement's short-term impact remains limited because it only applies to a restricted number of vehicles. The agreement establishes a requirement for car manufacturers to achieve 45% local production levels to access the reduced tariff rates. The agreement contains this provision to boost Indian manufacturing operations and safeguard domestic businesses. The conditions established by the agreement prevent BMW and Mercedes-Benz from changing their pricing strategy in the near future. The current market situation indicates that Indian consumers should not anticipate substantial price reductions for imported luxury vehicles. The India-UK trade agreement demonstrates positive prospects for future trade relations yet its effects on the luxury car market will become apparent only with time.

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India-UK FTA Welcomed, But BMW and Mercedes Say Car Prices Will Stay the Same

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