Mumbai/New Delhi, Jan 27 (PTI) Auto majors Mercedes-Benz, BMW, Skoda Auto Volkswagen, Audi, and Stellantis on Tuesday welcomed the signing of the free trade agreement between India and the European Union, calling it a "landmark event" that will "drive technological innovation" and boost the country's economy.

The luxury carmakers, however, ruled out reduction in prices in the foreseeable future.

Terming the Indo-EU FTA as a historic achievement for India, Mercedes-Benz India MD and CEO Santosh Iyer said the pact reiterates the "rising relevance of the Indian economy at a global stage".

"The FTA is also expected to strongly drive technological innovation and sustainable growth within the Indian automotive sector, with a sharp focus on future mobility. Saying that, the final implications of the FTA can only be determined once the fineprint of the agreement is available to us," he said.

He ruled out any price reduction of the company's vehicles in the foreseeable future after the deal.

On the impact of the FTA on prices of vehicles, Iyer said, "With more than 90 per cent of Mercedes-Benz India's sales volume comprising 'Made in India' locally manufactured models, and only around 5 per cent of sales coming via CBU imports from the EU, we do not foresee any price reduction for Mercedes-Benz vehicles from the FTA, in the foreseeable future." BMW and Skoda Auto Volkswagen welcomed the signing of the FTA and said the pact would propel the Indian economy, benefit the European Union and be a win-win for both regions.

They, too, ruled out any immediate revision in the pricing of the vehicles, saying it would be premature to draw conclusions on specific commercial or product strategies unless all details about the pact are available.

"The conclusion of the India-EU FTA is a historic and ambitious milestone, reflecting the growing strategic and economic relevance of India on the global stage," said Hardeep Singh Brar, President and CEO, BMW Group India.

He said the group has always advocated free trade as it enhances fair market access, strengthens economic collaboration, leverages mutual strengths, and builds more resilient supply chains, especially at a time when such cooperation is more critical than ever.

The proposed phased reduction of tariffs on cars and auto components has the potential to positively impact consumer confidence, enable greater product choice, and foster technological innovation and sustainable growth within the Indian automotive sector, particularly in future mobility, he said.

On possibility of a price change, he said, "We will closely evaluate the detailed the detailed implementation roadmap, timelines and qualification criteria once the fine print of the agreement is available." According to him, over 95 per cent of the company's volumes in India come from locally manufactured 'Made in India' models, with fully imported vehicles accounting for only about 5 per cent of the total sales.

Welcoming the pact, Audi India chief Balbir Singh Dillon, said the company recognises the FTA's potential to deepen economic ties with one of the world's largest trading blocs.

"This constructive approach to trade could support the broader automotive ecosystem, including innovation, supply-chain efficiency, and technology collaboration. That said, any implications for pricing and market can only be assessed once the final terms are available and carefully reviewed, including the timeframe of implementation," he said.

"Until then, it would be premature to draw conclusions on specific commercial or product strategies," Dhillon said.

He also said that Audi is positive that the EU FTA will create a stable and predictable environment for European automakers to invest, innovate, and better serve customers in the Indian market.

EU being one of India's largest trading partners, the FTA will propel the India economy, benefit the European Union and is a win-win for both regions, Skoda Auto Volkswagen India Pvt Ltd (SAVWIPL) Managing Director and CEO Piyush Arora said.

SAVWIPL, which has six brands under its umbrella -- Skoda, Volkswagen, Audi, Porsche, Lamborhini and Bentley -- also said the greater tariff certainty and a more predictable trade framework will allow the company to evaluate the introduction of a wider range of European models for Indian customers.

Stating that the agreement is expected to benefit customers in both regions, Arora said greater tariff certainty and a more predictable trade framework will allow the company to evaluate the introduction of a wider range of European models for Indian customers.

European auto major Stellantis India hailed the signing of the FTA as a "landmark" moment and said the pact will serve as a significant accelerator for the company's long-term commitment to 'Make in India for the World'.

Moreover, reduced trade barriers will help enhance manufacturing competitiveness, expand export potential, and support seamless integration of its India operations into global supply chains, Stellantis India Chief Executive Officer and Managing Director Shailesh Hazela said in a statement.

"The conclusion of the EU-India Free Trade Agreement is a landmark moment that deepens economic cooperation and strengthens India's position in the global value chain," Hazela said.

India and Europe on Tuesday announced sealing of an ambitious FTA -- billed as "mother of all deals" -- that came against the backdrop of a fractious global environment and trade disruptions largely caused by Washington's policy on tariff. PTI IAS RKL TRB