These 6 luxury cars will get a lot cheaper

Image: A model stands next to a new Aero Coupe car, made by luxury British automobile brand Morgan, after its launch at the China Luxury exhibition in Beijing.
Photographs: David Gray/Reuters BSM Team

Once customs duties are slashed, your dream to own a luxury car may become a reality.

In the next few years, you wouldn't have to shell out exorbitant amount of money to buy luxury cars in India. The Indian government is currently negotiating a free-trade agreement (FTA) with the European Union. Most of the big luxury auto badges come from Europe, including Ferrari, BMW, Mercedes-Benz, Volvo and Audi. Come 2017, when the auto sector will put into operation a lower levy regime, the customs duty would be lowered to 30 per cent from the current levels of 100 per cent and above.

Luxury car owners have been complaining about the heavy duty that is levied on imported vehicles. A car above Rs 22 lakh faces 100 per cent custom duty. That's not all, if one includes other cesses, surchages and duties like special additional and countervailing duties, the duties go up to a whopping 174 per cent.

So which cars would get cheaper and by how much, if and when, these custom duties are slashed?

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Tags: BMW , FTA , Audi , Ferrari , Mercedes-Benz