Italian luxury carmaker Ferrari expects the proposed India–EU Free Trade Agreement (FTA) to significantly improve accessibility and accelerate demand in the Indian market. Charles Antoine Geneste, Head of Southeast Asia and India at Ferrari, stated that the anticipated reduction in import duties could materially lower entry barriers for potential buyers. He noted, “The FTA is great news for us. We see it as an improvement of accessibility for our cars and a catalyst to accelerate the demand that we are already witnessing in India.”
Currently, completely built units (CBUs) attract import duties upwards of 100% in India. Under the proposed FTA framework, duties could reduce significantly, potentially to around 30%. Geneste mentioned that a reduction in import duty from around 110% to 30% could translate into roughly a 30% reduction in retail price for customers.
Ferrari intends to pass on the benefits of any duty reduction directly to customers. The company is preparing buyers for a post-FTA scenario, allowing them to configure their cars and align deliveries with the expected implementation timeline of the FTA. Despite the potential for increased demand, Ferrari emphasized its global philosophy of prioritizing exclusivity over scale.
Geneste highlighted that India is a developing market with strong structural tailwinds, including rising wealth and improving infrastructure. Ferrari plans to expand its presence in India through curated events and driving experiences, aiming to build a strong community and enhance customer engagement.
