Top European Car Brands You Can Buy in India

By nirza panchal On 05-02-2026 at 6:07 am

India and the European Union have signed a historic trade agreement that is expected to reshape the premium and luxury car market in the country. Known as the India–European Union Free Trade Agreement (India-EU FTA), the deal will gradually reduce import duties on European cars from a steep 110 percent to just 10 percent over the coming years.

Under this agreement, up to 2.5 lakh imported cars per year will be eligible for reduced import tariffs. In addition, import duties on European auto parts will be completely eliminated within the next 5 to 10 years.

Currently, India imposes a 70 percent import duty on cars priced below USD 40,000 (around Rs 36.66 lakh) and a 110 percent duty on cars priced above that threshold. The duty reduction will be implemented in phases, starting at 40 percent and gradually coming down to 10 percent.

The agreement applies to vehicles priced above 15,000 euros (approximately Rs 16.31 lakh). Notably, electric vehicles are excluded from the agreement for the first five years.

CBU vs CKD Explained

CBU (Completely Built Unit): Vehicles that are fully manufactured abroad and imported into India.

CKD (Completely Knocked Down): Vehicles imported in parts and assembled locally in India.

The biggest beneficiaries of the India-EU FTA will be cars imported as CBUs.

Mercedes-Benz

Mercedes-Benz is India’s best-selling luxury car brand. While most models are locally assembled, several high-end CBUs are expected to see substantial price reductions.

European Car	Current Ex-Showroom Price	Expected Price (40% Duty)	Expected Price (10% Duty)
AMG G 63	Rs. 3.59 Cr	Rs. 2.39 Cr	Rs. 1.88 Cr
AMG SL	Rs. 2.34 Cr	Rs. 1.56 Cr	Rs. 1.22 Cr
AMG GT 4-Door Coupe 63 S	Rs. 3.27 Cr	Rs. 2.18 Cr	Rs. 1.71 Cr
Maybach S-Class	Rs. 2.74 – 3.47 Cr	Rs. 1.82 – 2.31 Cr	Rs. 1.43 – 1.81 Cr
AMG CLE 53	Rs. 1.28 Cr	Rs. 85 lakh	Rs. 67 lakh

BMW

BMW is the second-largest luxury car brand in India. Its performance-oriented M cars and select CBU models will benefit significantly.

European Car	Current Ex-Showroom Price	Expected Price (40% Duty)	Expected Price (10% Duty)
BMW M2	Rs. 1 Cr	Rs. 66.66 lakh	Rs. 52.38 lakh
BMW M4 Competition	Rs. 1.52 Cr	Rs. 1.01 Cr	Rs. 79.61 lakh
BMW M5	Rs. 2.01 Cr	Rs. 1.34 Cr	Rs. 1.05 Cr
BMW M8 Coupe Competition	Rs. 2.38 Cr	Rs. 1.58 Cr	Rs. 1.24 Cr
BMW Z4	Rs. 87.90 – 92.60 lakh	Rs. 58.60 – 61.73 lakh	Rs. 46.04 – 48.50 lakh
BMW XM	Rs. 2.55 Cr	Rs. 1.70 Cr	Rs. 1.33 Cr

Audi

Audi’s flagship CBUs are expected to become more competitively priced.

European Car	Current Ex-Showroom Price	Expected Price (40% Duty)	Expected Price (10% Duty)
Audi RS Q8	Rs. 2.32 Cr	Rs. 1.54 Cr	Rs. 1.21 Cr
Audi Q8	Rs. 1.10 Cr	Rs. 73.33 lakh	Rs. 57.61 lakh

Jaguar Land Rover

The Defender range, imported as CBUs, is expected to become significantly more affordable.

European Car	Current Ex-Showroom Price	Expected Price (40% Duty)	Expected Price (10% Duty)
Land Rover Defender	Rs. 98 lakh – 2.60 Cr	Rs. 65.33 lakh – 1.73 Cr	Rs. 51.33 lakh – 1.36 Cr

Volkswagen

European Car	Current Ex-Showroom Price	Expected Price (40% Duty)	Expected Price (10% Duty)
Volkswagen Golf GTI	Rs. 50.91 lakh	Rs. 33.94 lakh	Rs. 26.66 lakh
Volkswagen Tiguan R-Line	Rs. 45.73 lakh	Rs. 30.48 lakh	Rs. 23.95 lakh

Skoda

European Car	Current Ex-Showroom Price	Expected Price (40% Duty)	Expected Price (10% Duty)
Skoda Octavia RS	Rs. 49.99 lakh	Rs. 33.32 lakh	Rs. 26.18 lakh

Conclusion

The India-EU FTA marks a major shift for the Indian automotive market. While dramatic overnight price drops are unlikely, the phased reduction in import duties will make European luxury and performance cars far more competitive in the long run.

For car enthusiasts and luxury buyers, the coming years promise more choice, better pricing, and a stronger European presence on Indian roads.