I recently bought a Mahindra XUV700, but after the trade deal, all branded international cars are going to come to India at lower prices. Did I make a mistake by buying the Mahindra XUV700 in a hurry? I could have driven branded international cars.

Autocar India

•3w

Don't worry, you are fine to have bought your Mahindra XUV700 when you did, and that's for a few reasons. For one, it's a well-sorted, great all-round SUV that you no doubt researched before purchasing, and chose above other SUVs also available in the market.

For one, the FTA does not necessarily mean new car brands will come to India. Even without setting up a factory, the cost of entering a new market like India is very high and brands will still have to invest in dealerships, leadership, service network, staff, marketing and much more.

Then there are the restrictions of the various FTA deals. The India-US FTA applies only to cars with engines above 3,000cc, while the India-EU FTA applies only to cars above around Rs 16 lakh, and then too the duty reduction will be in phases and slabs, so it's not likely that all cars will get the same reduction.

It's also up to the brand whether or not to launch new models here (based on their viability, not just the price) and whether or not to reduce prices of existing imported models - some brands have already said they will not do this.

Moreover, all these deals are still in discussion and will be introduced in phased manners, so it will be a few years before they are introduced, and even more years before we get the full benefit. So your decision to buy an XUV 700 now will not be affected.

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Mahindra

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