US EditionIndia plans to slash car tariffs to 40% in trade deal with EU: Reuters
India will reduce tariffs on about 200,000 combustion-engine cars from the EU to 40% with further cuts planned, excluding electric vehicles for the first five years, sources said.
- 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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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…
India and the EU are currently working on a comprehensive trade pact. First details have now become public: According to this, the German car industry could benefit massively from the deal.
The 40% tariffs will be further reduced to 10% over time.
President Ursula von der Leyen is this week after New Delhi to conclude a trade agreement. European automakers should benefit from significantly lower import tariffs
In the course of a free trade agreement, the levies should fall from up to 110 percent to 40 percent. In return, the agreement could boost Indian exports of textiles and jewellery. These had recently been hit by US tariffs of 50 percent.
India may slash EU car import tariffs from 110% to 40% as ‘mother of all’ trade deal nears
New Delhi has proposed slashing import duties to 40% immediately for about 200,000 combustion-engine cars a year, one of the sources said, its most aggressive move yet to open up the sector.
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