Overview
Ferrari has reported that orders from India have more than doubled as the India‑EU Free Trade Agreement (FTA) is set to become operational in early 2027. The company attributes the surge to the expected reduction of import duty on European luxury cars from around 110% to 30‑35% in the first year, later falling to 10%.
Key Developments
- Customers are visiting Ferrari showrooms daily to configure cars and inquire about pricing ahead of the tariff cut.
- Orders are being placed now to secure delivery once the FTA is in force, despite the usual 18‑month waiting period.
- Ferrari has created a dedicated India‑Southeast Asia team, headed by Charles Antoine Geneste and Francesco Bianchi, to focus on the market.
- The Universo Ferrari exhibition runs in New Delhi until 1 November 2026.
- New personalisation centres opened in Chennai and Ahmedabad allow buyers to customise interiors and exteriors.
Important Facts
Ferrari’s Indian sales data from Vahan shows 35 cars registered in 2024, a 29 % rise to 45 in 2025, and another 45 registrations in the first nine months of 2026. The company has appointed Aayush Tiwri as country manager and offers test‑drives in Delhi, Mumbai and Bangalore.
Exam Relevance
The impending FTA illustrates how trade policy can reshape domestic markets, a core topic in GS3: Economy. Understanding Completely Built Units (CBU) and tariff structures helps aspirants analyse the impact of liberalisation on luxury segments and revenue generation. The case also touches on luxury car market dynamics, consumer‑centric strategies, and the role of government‑led trade negotiations.
Way Forward
Post‑FTA, the reduced import duty is likely to make European super‑cars more affordable for India’s high‑net‑worth individuals, potentially expanding the market beyond the current niche. Monitoring registration trends, the performance of personalisation centres, and any further policy adjustments will be essential for assessing long‑term effects on India’s automotive sector and trade balance.