India-EU FTA timeline: BMW Group India urges faster implementation and clearer quota rules

BMW Group India President and CEO Hardeep Singh Brar urged quicker rollout of the India-EU FTA. Brar said delays could make Indian buyers hold off purchases. Brar spoke at a Federation of European Business in India FEBI session. The event focused on decoding the India-EU FTA and its impact.

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Brar said the auto sector needed firm timelines to plan prices and supply. Brar said customers were already waiting for possible duty cuts. Brar warned this uncertainty could slow sales before the agreement begins. Brar said the FTA should help over time, but clarity mattered first.

India-EU FTA timelines and customer decisions

"We will request the faster entry into force of the FTA because there is a question that we are answering -- when is this going to happen? The delay in implementation will potentially lead to customers postponing purchases, which is not good because everybody is anticipating a lowering of prices,\" Brar said.

\"A clear visibility will help us in handling how we navigate this situation. So, timelines are extremely crucial,\" Brar said. Brar added that buyers often asked whether they should wait. Brar said, \"Customers keep on asking if they should wait. I keep telling them it is going to happen in 2027. So, if you are in a hurry, dont wait for that,\".

India-EU FTA duty cuts for imported cars

Brar outlined current import duty levels for cars brought into India. Brar said duty was 110 per cent for vehicles priced above USD 40,000. Brar said duty was 70 per cent for cars priced below USD 40,000. Brar said the first year of the FTA could change pricing quickly.

Brar said the duty on higher-priced imported cars would drop sharply at the start. Brar said it would fall from 110 per cent to 40 per cent. Brar called this a major reduction. Brar said this expectation was shaping buyer behaviour and creating uncertainty for the market.

India-EU FTA quota regime and market access

Brar also raised concerns about the quota system linked to automotive imports. Brar said other sectors did not face quotas in the same way. Brar said the auto quota began with 1,00,000 units. Brar said it applied across slabs starting from 15,000 euros to 35,000, and above.

Brar said European carmakers were trying to understand how quotas would be shared. Brar said predictability would decide whether benefits reached the market. Brar said, \"So, this quota mechanism, transparency and will be important to ensure the intended benefits of the agreement translate into real market access without uncertainty.\"

Brar said the industry still saw long-term value in the proposed trade deal. Brar said, \"We remain confident that this FTA can become a cornerstone of India and EU automotive trade relations. The European automotive industry stands ready to invest, innovate and partner with India in this journey.\" Brar linked this to clearer rules and faster implementation.

With inputs from PTI