Lower prices on Ferrari cars to be applicable subject to final implementation of India-EU FTA
With the India-EU FTA (Free Trade Agreement), many items in the automotive, food, wine and spirits and luxury segments will see major price cuts. The India-EU FTA is expected to become operational later this year or in 2027. To secure early profits from the FTA, Ferrari moved quickly to offer bookings for its cars at significantly reduced prices. Let’s see the details.
Big savings on Ferrari petrol cars
As per the current tax regime, import duty of around 100-110% (basic customs duty + other levies) is imposed on CBU units. When the India-EU FTA comes into effect, import duties will initially be reduced by about 30-40%. This will apply to cars priced above €15,000 (approximately Rs 16.83 lakh). The import duty will be further reduced to just 10% in the coming years.
Anticipating the smooth functioning of the India-EU FTA, Ferrari has started taking bookings with a significant reduction in the prices of its cars. At the moment, the price cut is only available for Ferrari cars running on pure petrol. This is because while the India-EU FTA is clear about the taxes for petrol cars, there is not enough clarity about the import duties applicable for hybrid cars.
This is why Ferrari’s existing hybrid cars for India like the 296 GTB, 296 GTS and 849 Testarossa are currently excluded from this new pricing plan. EVs are also excluded from lower import duties in the first five years. This is likely to protect India’s domestic EV manufacturers. Ferrari currently has no BEVs on sale. However, the brand’s first BEV, the Luce, is making rapid progress and is expected to launch later this year.
Ferrari Petrol Cars – New Prices
For now, buyers can take advantage of the low prices of Ferrari’s petrol cars. With import duties reduced, Ferrari is cutting the prices of its petrol cars by almost 30%. The Ferrari Purosangue is currently available for Rs 10.50 crore. After FTA implementation, Purosangue may cost around Rs 7.35 crore, i.e. a reduction of Rs 3.15 crore (all prices ex-sh).
The Ferrari 12Cylinder Spider is currently available for Rs 9.15 crore. After FTA approval, the price of 12 cylinder Spyder may come down to Rs 6.40 crore. That means saving of Rs 2.75 crore. Similarly, the price of the Ferrari 12-cylinder coupe may come down to Rs 5.95 crore from the current Rs 8.50 crore, resulting in a saving of Rs 2.55 crore. Ferrari is also taking bookings for the upcoming Amalfi. Its cost is estimated at Rs 5.59 crore. Once the FTA is implemented, the price of the Amalfi could be around Rs 3.91 crore, leading to a saving of Rs 1.68 crore (all prices ex-sh).
Lower prices not applicable for immediate delivery
Ferrari accepting bookings for its petrol cars at reduced prices is based on the assumption that the India-EU FTA will be approved by the relevant government bodies on both sides. To avoid unnecessary legal entanglements, the lower prices will be applicable only for customers who will take delivery after the India-EU FTA comes into force. Existing import duties will apply to buyers taking delivery before that date.
