New Delhi: Italian luxury carmaker Ferrari expects the proposed India–EU Free Trade Agreement (FTA) to significantly improve accessibility and accelerate demand in the Indian market, 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 reduction in import duties could materially lower entry barriers for potential buyers while aligning with the company’s long-term India strategy.
“The FTA is great news for us. We see it as an improvement of accessibility for our cars and a catalyst to accelerate the demand that we are already witnessing in India,” Geneste told HT Auto.
FTA to lower effective prices, improve access
Currently, completely built units (CBUs) attract import duties upwards of 100% in India. Under the proposed FTA framework, duties could reduce significantly, potentially to around 30%.
“With the information we have today, a reduction in import duty from around 110% to 30% could translate into roughly a 30% reduction in retail price for customers,” Geneste said.
He added that Ferrari intends to pass on the benefits of any duty reduction directly to customers. Interestingly, the company is already preparing buyers for a post-FTA scenario.
“Customers can already walk into dealerships, configure their cars, and effectively align deliveries with the expected implementation timeline of the FTA,” he noted.
Not volume-driven, but demand-responsive
Despite the potential for increased demand, Ferrari reiterated that its global philosophy will remain unchanged, prioritising exclusivity over scale. “Our strategy is not volume-driven. As our founder said, we will always produce one car less than the demand,” Geneste said.
This approach will continue to guide allocations in India as well, even if demand surges post-FTA. “We will follow demand with a balanced and strategic approach, but always maintaining the same philosophy, focusing on quality, community, and long-term engagement rather than volumes,” he added.
India evolving into a strategic growth market
While India remains a relatively small market for ultra-luxury performance cars, Ferrari sees strong structural tailwinds, from rising wealth to improving infrastructure and growing enthusiast culture. “India is a developing market, but all indicators (from infrastructure to customer appetite) are moving in the right direction,” Geneste said.
He pointed to expanding track infrastructure and increased brand-led 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 expects the FTA to bring in new customers and potentially accelerate purchase decisions. However, it emphasised that buying behaviour in this segment is not purely price-led.
“A Ferrari purchase is not just price-driven. 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 broader ownership ecosystem in India, spanning track experiences, 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 be closer to our clients, create more experiences, and build a strong community. It’s a long-term journey,” Geneste said.
Ferrari is also looking to replicate global brand experiences locally, including showcasing its full portfolio (from road cars to motorsport heritage) in India.
Outlook: Long-term play with policy tailwinds
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 one over time. We are here for the long run,” Geneste said.
As policy tailwinds align with rising 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.