The India-EU FTA cuts import duty on luxury cars, and Ferrari's new Chennai and Ahmedabad dealerships show how supercar brands are positioning ahead of 2027.
Luxury cars are about 1% of India’s roughly 4 million annual passenger vehicles, yet the top five brands sold about 49,000 units in FY25.
Ferrari will open dealerships in Chennai with KUN Group and Ahmedabad with Infinity Group by end 2026, joining Delhi, Mumbai and Bengaluru, after about 45 registrations in 2025.
The India-EU FTA, expected in 2027, cuts duty on fully imported cars from 110% to 30-35% initially, then 10% in five to 10 years, subject to annual quotas.
Charles Antoine Geneste, Head of Southeast Asia, Ferrari, told BusinessToday, “Many people are walking into dealerships and saying that the FTA is coming.”
CEO Benedetto Vigna told analysts India is an opportunity Ferrari will focus on more, helped by the new deal, though development will take time.
Purosangue, priced at INR 10.50 crore, is reportedly bookable at about INR 7.59 crore for post-FTA deliveries, with hybrids excluded for now.
Lamborghini and Porsche import fully built cars and gain similarly, whereas Mercedes-Benz, BMW and Audi assemble mostly locally, so only their top-end imports benefit.
Localisation pays: Mercedes-Benz India posted its best-ever first half in 2026 at 9,768 units, while BMW India’s 4,354-unit first quarter was its strongest.
Reach follows: BMW plans 19 outlets across 18 cities in 2026, Mercedes-Benz over 20 in H2 including Varanasi, and Audi about 40 dealerships by 2027.
Rupee weakness against the euro has kept pushing prices up, and Mercedes-Benz India’s CEO says tariff savings rarely pass fully to buyers, yet they cushion future hikes.
Editor’s Note
Quotas, not just duty, will decide winners. With 100,000 cars allowed in Year 1, brands with waiting lists are best placed, and Ferrari’s queue is already forming.
Showrooms in Chennai and Ahmedabad signal that wealth, not population, now draws retail maps. Supercar makers follow money clusters, not metro lists.
Importers win on desire, localisers on volume. The smartest brands will do both, assembling more in India while keeping halo imports for aspiration.
India’s luxury buyer is about to be spoilt for choice, and that is wonderful news for everyone selling dreams.
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