Ferrari Dealers Accept Orders at 30 Percent Reduced Prices Ahead of India-EU FTA

Ferrari dealerships in India have started accepting orders at prices reduced by 30 percent. This move anticipates the India-European Union (EU) free trade agreement (FTA), which is expected to take effect in 2027. The FTA will significantly lower import duties on European-made cars priced above €15,000 (Rs 16.82 lakh). Duties will drop from the current 110 percent to about 35 percent in the first year, and then to 10 percent in the following years.

Key Highlights

• Ferrari dealers in India accept orders at 30 percent reduced prices ahead of India EU FTA
• Import duties on European cars above €15000 to drop from 110 percent to 35 percent in 2027
• Only pure petrol Ferrari models qualify for reduced pricing under current FTA projections
• Purosangue price expected to fall from Rs 10.5 crore to Rs 7.35 crore after FTA implementation

Ferrari Models and Pricing Changes

At present, Ferrari offers six models in India: the 296 GTB, 296 GTS, 12Cilindri Coupe, 12Cilindri Spider, 849 Testarossa, and Purosangue. The Amalfi will join the Indian line-up later in 2024, with bookings already open at an indicated price of Rs 5.59 crore.

Only pure-petrol Ferrari models are eligible for the 30 percent price reduction at this time. These include the Purosangue, 12Cilindri Coupe, 12Cilindri Spider, and the upcoming Amalfi. The status of import tariff cuts for hybrid cars under the FTA remains unclear. As a result, hybrid models are not included in the current reduced pricing scheme.

With the projected 30 percent reduction, the Purosangue’s price in India is expected to decrease from Rs 10.5 crore to approximately Rs 7.35 crore. This represents a reduction of Rs 3.15 crore. The 12Cilindri Spider is likely to see its price fall from Rs 9.15 crore to Rs 6.4 crore. The 12Cilindri Coupe’s cost may drop from Rs 8.5 crore to Rs 5.95 crore. The Amalfi’s price is anticipated to reduce from Rs 5.59 crore to Rs 3.91 crore.

Implementation Timeline and Conditions

The India-EU FTA is expected to be implemented in 2027. Ferrari deliveries for Indian customers typically take over six months. This timeline allows dealers to accept orders now, with the expectation that the reduced prices will apply when the FTA is in effect. However, buyers taking delivery before the FTA’s implementation will not benefit from the reduced pricing.

Final pricing will depend on the confirmed details of the India-EU FTA and fluctuations in the EUR-INR exchange rate. Customers who order pure-petrol Ferrari models now will receive their cars only after the FTA terms are finalized.

Impact on Competitors and Electric Models

Ferrari is positioned to benefit more from the India-EU FTA than some competitors. For example, Lamborghini no longer sells pure-petrol cars in India, making Ferrari’s pure-petrol models more competitive under the new tariff structure.

The FTA will not reduce import duties on electric vehicles (EVs) for the first five years. Therefore, Ferrari’s debut EV, the Luce, will face the full import duty if launched in India within that period.