US EditionIndia-EU FTA Explained: Will European Luxury Cars Get Cheaper in India?
The deal cuts tariffs on autos to 10% over five years with a quota of 250,000 cars, aiming to double EU exports to India by 2032, officials said.
- On Tuesday, India and the European Union announced they concluded a long-delayed free trade agreement, with formal signing expected after five to six months of legal vetting.
- With trade already large, evidenced by $128 billion through March 2025, two-decade talks gained momentum after Washington's 50% tariff move, the EU said.
- India's commerce ministry said cars above 15,000 are divided into three segments with tariffs falling to 30-35% soon, then phasing to 10% over five years, with EV quotas from year five.
- The European Commission said tariffs on 99.5% of goods, including machinery, chemicals, iron and steel, will be phased out over seven years, with EU exports to India expected to double by 2032.
- With the deal concluded, the Indian car market may see more European automakers but EU legal vetting could face Mercosur-like court challenges, while the EU Carbon Border Adjustment Mechanism from January 1 offers no immediate relief, India said.
20 Articles
20 Articles
India-EU FTA Explained: Will European luxury cars get cheaper in India?
India EU free trade agreement, European luxury cars in India: Tariffs on European-made cars imported into India would progressively come down from 110% to 10%. However, industry insiders say cars might not actually get as cheap as the tariff structure suggests.
Ten instead of 110 percent - lower tariffs on EU cars are an important part of the EU's trade agreement with India. German car companies have new opportunities. But questions remain. By Claudia Wehrle.
India, EU Reach Landmark Trade Deal, Tariffs to Be Slashed on Most Goods
India and the European Union struck a long‑delayed deal on Tuesday that will slash tariffs on most goods, aiming to boost two‑way trade and reduce reliance on the United States amid growing global trade tensions. The deal is expected to double EU exports to India by 2032 by eliminating or reducing tariffs in 96.6% of traded goods by value, and will lead to savings of 4 billion euros ($4.75 billion) in duties for European companies, the EU said. …
India-EU FTA: European Cars Get Massive Duty Slash, But Only For 2.5 Lakh Units A Year
Under the India-EU Free Trade Agreement, import duties on European cars will be significantly cut for up to 2.5 lakh units a year, reshaping the auto market while offering potential price relief for select European models.
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