High import tariffs don't help nations become competitive: Lamborghini exec

India currently levies an import duty of up to 110 per cent on completely built units (CBUs) of automobiles

High import tariffs on automobiles do not help countries become competitive economies, Automobili Lamborghini Asia Pacific Regional Director Francesco Scardoani told Business Standard on Wednesday. He added that these have ‘bad consequences’ not just for the supply chain but also for end consumers. 

 

Lamborghini manufactures all its cars at its factory in Sant'Agata Bolognese, Italy. India levies an import duty of up to 110 per cent on completely built units (CBUs) of automobiles. As part of ongoing trade negotiations with the European Union (EU), India has reportedly offered to reduce the duty on CBUs to 10–20 per cent.

 

When asked about the same, Scardoani replied: “We are monitoring the situation. We believe the free trade agreement is what can make the economy competitive and beneficial for the end user, especially in the automotive sector, where the supply chain is so long.” 

 

"This would be an amazing step the Indian government could take in order to make the product more attractive for customers. So, we are totally supporting free trade between countries. We are sure that tariffs between countries are not helping in becoming competitive economies," he said.

 

US President Donald Trump imposed a 25 per cent tariff on automobile imports from April 3, impacting carmakers like Lamborghini, for whom the US is the largest market.

 

Scardoani said: “We acknowledge what the US government has set in terms of tariffs with the EU and our cars. We are monitoring the situation not only because the US is the most important market for us and the Volkswagen Group -- the group we are part of -- but also because we believe that a competitive economy is based on free trade agreements."

 

"Tariffs, or war over tariffs create barriers for consumers and not just for the manufacturers. They have bad consequences for the entire value chain, from the supply to the manufacturer and the customer," he added.

 

Scardoani was speaking to the newspaper after launching Lamborghini's new car Temerario at a starting price of ₹6 crore (ex-showroom). The hybrid sports car can reach a top speed of 343 km per hour and can accelerate between 0 to 100 km per hour in just 2.7 seconds.

 

The company sold 113 cars in India in 2024, recording a 10 per cent year-on-year (Y-o-Y) growth. Globally, the company sold 10,687 cars last year, recording a six per cent Y-o-Y growth.

 

Expressing hope for strong growth in India, he noted that as the fastest-growing major economy in the world, India is producing new millionaires at a rate unmatched by any other market. Lamborghini currently has three dealerships in India, one each in Delhi, Mumbai and Benglauru.