US EditionIndia-EU FTA Explained: Will European Luxury Cars Get Cheaper in India?
The deal will cut car tariffs from 110% to 10% over years, with a 250,000-unit annual quota for vehicles over €15,000, boosting EU exports to India by 2032.
- On Tuesday, India and the European Union struck a long-delayed deal to slash tariffs on most goods, Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen announced.
- Momentum followed Washington's 50% tariff, with bilateral trade crossing USD 190 billion in 2024-25 as parties sought to reduce reliance on the United States.
- Under the agreement, up to 250,000 vehicles per year qualify for reduced tariffs, with India cutting car duties from 110% to 10% over five years and initial cuts to 30%-35%.
- The EU expects the pact to double its goods exports to India by 2032, officials said, and pledged 500 million euros for emissions cuts, with implementation expected within a year.
- However, agriculture-related items like soya, beef, sugar, rice and dairy were excluded, the EU's Carbon Border Adjustment Mechanism started January 1 with no immediate relief, and legal vetting may face setbacks similar to Mercosur.
22 Articles
22 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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