If you are planning to own an European car in India, I would suggest you to wait for a while. According to the recent headlines, most of the European luxury cars are set to get dramatically cheaper in the near future. This list of luxury cars also includes a few cars from South Korea and Japan.
The European cars to get cheaper include Jaguar, BMW, Volkswagen and Renault. The lowered price rates will bring these European luxury cars to a rate lesser than the imported models from the leading firms like Hyundai, Toyota and Honda.
The reason behind the slashing down of rates is expected slash in government customs duty on vehicles shipped from European countries. Government is also expected to cut down the custom duty on the cars shipped from some other countries like South Korea, Germany and Japan.
According to the free trade agreements (FTA) the custom duty on luxury cars shipped from France, Italy, UK and Germany may be cut down to 30%. This slash in custom duty might bring the greater access for the a few services to Europe which includes Textile industries and Agricultural industries. Korean and Japanese car firms might also benefited with the same, but after a snag of a year or two.
The non European car firms find it pretty expensive to ship their luxury cars in India. Current taxation policy put up the fully built cars ranging below 20-22 lakhs at 60% custom duty and those pricing around Rs 20- 22 lakh and with engine capacity of over 1,500 cc are put up with 100% custom duty. Unlike the other brands and foreign firms, the European cars are facilitated to be shipped at 10% custom duty if comes in a quota of at least 2.5 lakh cars. Anything more than the number faces 30% levy.
This change in the government taxation policy will bring a major advantage for the European car companies. This reduction in the custom duty will bring a considerable slashed price for the end consumer.