Bentley has started accepting orders for the Bentayga luxury SUV at reduced prices in India as a result of the India-UK Free Trade Agreement (FTA). The Bentayga is one of the first premium British vehicles to benefit directly from the revised import duty structure introduced under the landmark trade agreement.
Bentley dealers have started taking bookings for the Bentayga at the new price, but Bentley India has not announced the exact post-FTA prices.
The price reduction comes as the India-UK FTA gives much lower import duties on eligible British-built vehicles. Under the agreement, the import duty on petrol-driven vehicles manufactured in the UK with engine capacities less than 3,000cc has been reduced from 110% to 30%, subject to certain conditions.
Bentayga Among First Beneficiaries
The Bentley Bentayga will be one of the first luxury vehicles in India to benefit from the new duty structure immediately after this deal. The Bentayga Extended Wheelbase (EWB) was priced at around ₹5.9 crore in the pre-availability period before the launch date, with the starting ex-showroom price at around ₹5.9 crore with customisation options.
Although Bentley did not disclose the new pricing, the reduced customs duty is expected to make the SUV much more competitive in India's ultra-luxury vehicle segment.
Limited Annual Quota
The lower import duty under the India-UK FTA does not apply to unlimited imports. It is the only concession, in this case, granted under an annual quota of 10,000 imported vehicles under the agreement.
When the annual quota is exhausted, vehicles imported beyond the limit may be subject to the regular customs duty structure unless additional provisions are introduced.
What the FTA Means
The India-UK Free Trade Agreement aims to strengthen trade ties between the two countries by reducing tariffs across many sectors, including automobiles.
The automotive industry is to be the beneficiary of the deal as less expensive products will be sold to consumers, and British-made cars will be sold at a higher price.
Luxury car manufacturers with production facilities in the UK are expected to benefit from the new import duty law and will benefit greatly from this new import duty.
Bentley Bentayga
The Bentayga is Bentley’s flagship luxury SUV and is at the very heart of a high-quality interior complemented by high-performance engineering.
The extended wheelbase (EWB) version has enhanced rear-seat comfort, additional legroom, premium leather upholstery, advanced infotainment technology, and a wide variety of bespoke personalisation options.
Depending on the market, the Bentayga is supplied with powerful petrol and hybrid powertrains that deliver high performance and Bentley’s refinement and luxury.
Impact on the Luxury Car Market
The new import duties are expected to make several British luxury vehicles more attractive to Indian customers over the next few months, industry experts say, and make them more attractive in the years to come.
Although the Bentayga is the first beneficiary, other premium British brands may also review their pricing strategy as they consider the opportunities created by the India-UK FTA.
For wealthy buyers buying a luxury SUV, the lower import duty will result in significant savings compared to the previous pricing on eligible models imported within the annual quota.
Bentley India will be announcing the new pricing and delivery schedules in the near future, with customer bookings for all new trade to be done in the current market that will take place.
