The proposed bilateral trade agreement between Indian government and European Union is expected to benefit the firm’s like Skoda Auto and Audi India the most. As per this agreement, the government plans to decrease the import duty on certain number of cars from the overseas market. It is to be mentioned here that both Audi and Skoda are subsidiaries of the German auto giant Volkswagen.
The cars that are expected see the maximum tariff reduction under this agreement include a few models of Skoda, Audi and even BMW. As per a statement given by a government official to TOI, based on the last financial year’s import data, the buyers in the Indian market may end-up buying Skoda’s made-in-Europe Superb, Octavia and Laura models, if the proposed tariff reduction being materializes.
The Audi models that are expected to be included in this reduction of tariff would be hot selling sedan’s like A4 and A6 and other popular India portfolio models like Audi Q7 and A8. In the last financial year, while the total imports of Audi A4 and A6 stood at 2383 units, the total sales of Audi Q7 and A8 models stood at 766 units. One more model that may get benefited due to this proposed bilateral trade agreement is BMW 7 Series, which was imported 556 units last year.
