US EditionIndia plans to slash car tariffs to 40% in trade deal with EU: Reuters
India will cut tariffs on EU cars to 40% from up to 110% immediately for a limited quota, with further reductions to 10% over time, excluding electric vehicles for five years.
- On Tuesday, India plans to cut import tariffs on EU cars to 40% from as high as 110%, with immediate reductions for a limited set of models, sources said.
- Geopolitical and trade pressures have pushed negotiators toward compromise as the European Union seeks supply‑chain diversification and India aims for technology, investment, and access to its $4.2 trillion economy.
- Negotiators say the tariff path will be phased, reaching about 10% over time, while battery electric vehicles will be excluded from duty cuts for five years to protect Mahindra & Mahindra and Tata Motors.
- Lower taxes will let carmakers price imported models more competitively and test demand, while investors and suppliers line up new investment as the Indian market expected to grow to 6 million units a year by 2030.
- If signed, the pact will still need European Parliament approval, which could take at least a year, while the Carbon Border Adjustment Mechanism and agriculture and dairy remain unresolved.
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A free trade agreement between India and the European Union is in the final stages. Under this agreement, tariffs on cars imported from the EU will be reduced from 110% to 40%, which could be reduced to 10% in the future.
India to slash tariffs on cars to 40% in trade deal with EU: Sources
NEW DELHI: India plans to slash tariffs on cars imported from the European Union to 40 per cent per cent from as high as 110 per cent, sources said, in the biggest opening yet of the country's vast market as the two sides close in on a free trade pact that could come as early as Tuesday (Jan 27).Prime Ministe
India is set to cut tariffs on cars from 110 percent to 40 percent in a trade deal with the EU. The tariffs would be lower for a limited number of European cars priced above 15,000 euros. Initially, they would only apply to cars with internal combustion engines.
According to a report, the Indian government plans to drastically reduce import tariffs on cars from the European Union (EU) from up to 110 percent to 40 percent. Discussions on the trade agreement could be concluded on Tuesday. German manufacturers Volkswagen, Mercedes-Benz and BMW are expected to benefit from the lower import tariffs, but also the companies Stellantis and Renault. Currently, European car manufacturers hold a share of less than…
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