New Delhi: Italian luxury carmaker Ferrari expects the proposed India-EU free trade agreement (FTA) to significantly improve Indian market access and boost demand, even as it maintains its global strategy of limited volumes and brand exclusivity.
Charles Antoine Geneste, head of Southeast Asia and India at Ferrari, said the anticipated cut in import duties could lower entry barriers for potential buyers, in line with the company’s long-term India strategy.
“The FTA is very good news for us. We see it as a catalyst to improve the penetration of our cars and accelerate the demand we are already seeing in India,” Geneste told HT Auto.
FTA will reduce effective prices and improve access
Currently, India attracts over 100% import duty on completely manufactured units (CBUs). Under the proposed FTA framework, duties could be reduced significantly, potentially by around 30%.
“According to the information we have today, a reduction in import duty from approximately 110% to 30% could result in a reduction in the retail price for customers by approximately 30%,” Geneste said.
He said Ferrari intended to pass the benefits of any duty cuts directly to customers. Interestingly, the company is already preparing buyers for the post-FTA scenario.
“Customers can already visit dealerships, configure their cars and effectively align deliveries with the expected implementation timelines of the FTA,” he said.
Not volume-driven, but demand-responsive
Despite the prospect of increased demand, Ferrari reiterated that its global philosophy will remain unchanged, prioritizing exclusivity over scale. Geneste said, “Our strategy is not volume-based. As our founder said, we will always produce one car less than the demand.”
This approach will continue to guide allocations in India even as demand picks up post-FTA. “We will follow the demand with a balanced and strategic approach, but will always maintain the same philosophy, focusing on quality, community and long-term engagement rather than quantity,” he said.
India is developing as a strategic growth market
While India remains a relatively small market for ultra-luxury performance cars, Ferrari sees strong structural tailwinds ranging from rising wealth to improving infrastructure and a growing enthusiast culture. “India is a developing market, but all the indicators (from infrastructure to customer interest) are moving in the right direction,” Geneste said.
He pointed to the expansion of track infrastructure and increase in brand-based activities as key enablers of market maturity.
Ayush Trivedi, Country Manager, Ferrari India, highlighted the natural alignment between the brand’s core values and India’s evolving consumer mindset. “There is an organic alignment between Ferrari’s values (innovation, performance, pushing limits) and the aspirations of Indian customers today,” Trivedi said.
FTA may bring new buyers, but passion remains key
Ferrari hopes the FTA will bring in new customers and potentially accelerate purchasing decisions. However, it emphasized that purchasing behavior in this segment is not solely based on price.
“Buying a Ferrari isn’t just based on price. It’s about passion, connection with the brand and being part of a global community,” Geneste said.
India already has a relatively young and growing customer base and the company expects this trend to continue.
Beyond pricing and products, Ferrari is investing in building a comprehensive ownership ecosystem in India, including track experience, community engagement and brand immersion.
The company plans to expand its on-ground presence through curated events, driving experiences and initiatives that bring the Maranello experience closer to Indian customers. “Our goal is to stay closer to our customers, create greater experiences, and build a stronger community. This is a long-term journey,” Geneste said.
Ferrari is also looking to replicate global brand experiences locally, including showcasing its entire portfolio (from road cars to motorsport heritage) in India.
Outlook: Long-term game with policy headwinds
Ferrari’s India strategy remains firmly long-term, with the FTA acting as a potential inflection point rather than a fundamental shift in approach. “India is a growing market and will evolve into a more mature market over time. We are here for the long term,” Geneste said.
As favorable policy conditions align with growing demand and improving ecosystem readiness, India could gradually become a more prominent market in Ferrari’s global portfolio, albeit on its own terms of exclusivity and brand ethos.
