McLarens Cars to Undergo a Price Cut of up to Rs 3.3 Crore Ahead of India-UK FTA

Key Highlights:

A proposed trade agreement between India and the UK could soon make owning a McLaren in India significantly less expensive. Once the India-UK trade agreement comes into effect, prices of select McLaren models could drop by as much as Rs 3.3 crore, thanks to lower import duties on British-built cars.

McLaren is evaluating revised pricing for its India line-up, following a similar move by Jaguar Land Rover, which recently announced price cuts on select flagship SUVs.

At present, fully imported high-performance cars attract customs duties of up to 110 percent, which has a direct impact on their retail prices in India. Under the proposed India-UK trade agreement, import duties on qualifying British petrol vehicles with engines above 3.0L and diesel vehicles above 2.5L will be reduced from 110 percent to 30 percent in the first phase. The duty rate is then expected to be gradually lowered to 10 percent over the next five years, subject to an import quota.

Since all McLaren road cars are manufactured in the United Kingdom, the brand stands to benefit directly from the revised duty structure.

McLaren entered the Indian market in 2021 and currently sells the 750S Coupe, 750S Spider, Artura and GTS through its official retail partner, Infinity Cars. While the company is yet to officially announce any price revisions, the implementation of the India-UK FTA could make British performance cars considerably more accessible for Indian buyers.

The McLaren 750S Coupe, currently priced at around Rs 7.94 crore, is expected to see its price fall to approximately Rs 4.94 crore, translating to a reduction of around Rs 3 crore. The larger saving, however, could come with the McLaren 750S Spider. The convertible supercar, which currently carries a price tag of Rs 8.78 crore, could become available for around Rs 5.46 crore after the duty revisions, making it cheaper by nearly Rs 3.32 crore (all prices are ex-showroom).

Meanwhile, the McLaren GTS could also witness a substantial reduction. Its ex-showroom price may come down from Rs 6.15 crore to around Rs 3.83 crore.

The expected benefits are likely to be limited to McLaren's conventional petrol-powered models. The Artura is a hybrid car and it is not expected to qualify for the lower import duties during the initial phase of the trade agreement, meaning its pricing is unlikely to change immediately.

The development could also pave the way for other UK-based luxury and performance brands, including Aston Martin and Bentley, to pass on the benefits of lower import duties to customers in India.