Hardeep Singh BrarNew Delhi: BMW Group India President and Chief Executive Officer Hardeep Singh Brar on Thursday urged faster implementation of the proposed India-European Union Free Trade Agreement (FTA), warning that delays could push Indian customers to postpone purchases as they anticipate price reductions on imported vehicles.
According to PTI, speaking at an event organised by the Federation of European Business in India (FEBI) on decoding the India-EU FTA, Brar said greater clarity on implementation timelines and transparency in the proposed quota regime would be critical for the automotive industry to plan effectively.
“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.
He added that visibility on timelines would help companies navigate market expectations and manage demand shifts. “A clear visibility will help us in handling how we navigate this situation. So, timelines are extremely crucial,” he noted.
Brar highlighted that import duties on fully built cars remain steep, with India currently levying 110 per cent duty on vehicles priced above $40,000 and 70 per cent on vehicles priced below $40,000.
He said that under the FTA proposal, duties in the first year could drop sharply. “In the first year when the FTA kicks in, it will come down straight from 110 per cent to 40 per cent, which is a significant drop,” he said.
Brar also pointed to increasing customer queries around whether to wait for price reductions. “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, don’t wait for that,” he said.
On the proposed quota mechanism under the agreement, Brar said the automotive sector is the only one among industries to have such a restriction. “It starts with 1,00,000 units to begin with at different slabs, starting from 15,000 euros to 35,000, and above. We (European carmakers) all are contemplating where we will all fit in,” he said.
Brar stressed that transparency and predictability in the quota allocation process would be essential for ensuring the agreement delivers real market access without uncertainty.
“So, this quota mechanism, transparency and predictability will be important to ensure the intended benefits of the agreement translate into real market access without uncertainty,” he added.
Despite the concerns, Brar said European carmakers remain optimistic about the long-term impact of the proposed deal. “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,” he said.
