Indian market is flooded by cars, both domestic and luxury. Indian consumers, now, look out for an extravagant driving experience and this is one of the main reasons for the increasing demand for luxury cars. The car market in India has grown leaps and bounds and is currently in a revolutionary phase. The demand for luxury does not stop with the car segment, the term luxury is seen creeping into the interiors of Indian market and Indian consumers are now becoming great fans of luxury and international brands.
However, there is some good news coming in for the Indian consumers as luxury cars will soon witness a fall in price. The Indian Government is taking steps to slash the customs duty on vehicles from Japan, Germany and South Korea and this will result in subsequent lowering of prices for luxury cars. The rates will be slashed for countries with which India has signed a Free Trade Agreement (FTA).
The European car makers will benefit from the Government’s move, as the customs duty will be reduced by 30% by 2017. The same benefit will reach Japan and South Korea with a lag of one or two years, according to the reports. The reduction in prices will also include local levies. Duty concessions are available to all cars, but companies expect the imports to be limited when it comes to luxury segment.
The companies also expect the market to expand by the year 2017 and the demand to grow. The estimates say that the per capita income of the country would reach a new level by 2017 and the economy will expand further. The timing of duty reduction will add fillip to the sales figures and is planned for the right time. Will 2017 be a year of luxury cars?
