India, Jan. 27 -- India's luxury and performance car market is set for a structural shift after the official announcement of the India-European Union Free Trade Agreement (FTA). As part of the pact, India has agreed to grant the EU tariff concessions that none of its other trading partners currently enjoy, including a phased reduction in import duties on cars from as high as 110 per cent to as low as 10 per cent. The move is expected to directly affect the pricing of fully imported European vehicles sold in India, particularly in the luxury and performance segments.

Until now, fully built-up (CBU) cars imported from Europe were subject to one of the world's highest automotive tariff regimes. These vehicles attracted 70 per cent Basic Cus...