The UK FTA trade agreement once signed will make luxury car import duty reduced in India.
Is this risk already baked in the price for M&M? Maruti ideally should not be affected much given that they are still majorly a people’s car producer. Tata Motors may infact benefit since they can import their JLRs.
But the reduction of import duty is expected to be gradual over 5-10 years plus there are some quota talks aswell… India's carmakers back zero duty on limited British imports under trade deal: sources - The Economic Times
There is a huge gap between M&M and JLR prices. Reduced duty won’t impact this gap considerably. Different market segments altogether.
Though i dont know which models might compete with our Indian car maker models but I believe there will be some market share loss. Else the association would not seek terms like a) gradual duty reduction b) quota system for the import numbers…
But I think maybe its already built in the price, why else would it trade at 12 EV/EBIDTA while Maruti trades at 18! Even though Last 5 yrs M&M Revenue has been above Maruti and avg 5 yr OPMs have been almost 70% more…
