Ferrari Expands in India as EU–India FTA Creates New Opportunities for Italian Luxury Automotive Brands

With two new dealerships planned and its first Universo Ferrari exhibition in India, the Italian manufacturer is strengthening its market presence ahead of anticipated changes in EU–India trade conditions.

22 October 2026 | Automotive & Components – International Trade

Ferrari is expanding its presence in India, announcing plans to open two additional dealerships in Chennai and Ahmedabad by the end of 2026. The expansion will bring the Italian luxury sports car manufacturer's network to five major Indian cities, adding to its established operations in New Delhi, Mumbai and Bengaluru.

The announcement accompanies the opening of Universo Ferrari, the brand's first exhibition in India, inaugurated in New Delhi on 17 October 2026. Together, these developments signal Ferrari's growing attention to the Indian market and illustrate how Italian businesses are beginning to position themselves ahead of the implementation of the EU–India Free Trade Agreement (FTA).

Preparing for a More Open Automotive Market

The EU–India FTA could significantly change competitive conditions for European automotive manufacturers in India. According to the European Commission, the agreement provides for a progressive reduction of Indian import duties on eligible European motor vehicles, potentially from 110% to as low as 10%, within an agreed quota framework.

These benefits are not yet applicable. The agreement must complete the necessary legal and institutional procedures before entry into force, while individual products remain subject to their tariff schedules and rules of origin.

Ferrari's management has indicated its intention to pass relevant tariff benefits on to Indian customers once the agreement is implemented. Lower duties could improve the price competitiveness of imported vehicles, though the outcome also depends on taxes, distribution costs, product eligibility and brand positioning.

Beyond Tariffs: Building a Stronger Presence in India

Ferrari plans to establish its Chennai dealership in partnership with KUN Group and its Ahmedabad operations with Infinity Group, widening geographical reach while maintaining a selective distribution model.

Universo Ferrari showcases the company's heritage, technological capabilities, motorsport achievements and personalisation programmes. Ferrari has also collaborated with students from India's National Institute of Design on concepts inspired by Indian cities.

These initiatives underline the importance of customer engagement and local market understanding, particularly in the luxury segment, where brand experience, personalisation and after-sales relationships are central to the commercial proposition.

The Perspective of the Italy–India Economic Observatory

The developments are consistent with the Italy–India Economic Observatory – Issue 0, published by IICCI in September 2026. The Observatory identifies automotive and components among established areas of bilateral manufacturing cooperation, and highlights the differing commercial requirements across product categories.

Its analysis of premium consumer-market propositions stresses controlled distribution, customer experience, dependable service and appropriate positioning. Market access is therefore not simply a question of reducing customs duties. Effective commercial strategies also require qualified partners, regulatory preparation and sustained engagement.

The Observatory recommends using the pre-implementation period to validate products and partners and evaluate current requirements, without assuming that future preferential tariffs already apply.

From Trade Liberalisation to Business Opportunities

Ferrari's expansion illustrates how anticipated trade policy changes can influence corporate strategy. While the EU–India FTA may improve conditions for Italian exporters, successful market development will continue to depend on company-specific capabilities and execution.

For the wider Italian business community, the lesson extends beyond luxury cars: companies preparing their distribution networks, regulatory compliance, product positioning and business partnerships before implementation may be better positioned when preferential arrangements take effect.

For IICCI, the strategic opportunity is to help translate improved market-access conditions into durable commercial relationships, building on the complementarity of Italian capabilities and India's evolving market demand.

Sources: The Economic Times (20 October 2026); Business Today (19 October 2026); European Commission EU–India FTA publications; IICCI Italy–India Economic Observatory, Issue 0 (pp. 38, 40, 53–54). Observatory link: https://www.indiaitaly.com/init-economic-observatory-italy-india.