Historic India-EU trade pact to cut car import duties, boost European auto market access
New Delhi, India – Web Desk: India is set to reduce tariffs on European car imports from up to 110% to 40%, under the historic India-EU free trade agreement described as the “mother of all deals.” The move will open India’s massive automotive market to brands including Volkswagen, Mercedes-Benz, BMW, Renault, and Stellantis. Tariff cuts will initially apply to vehicles priced above €15,000, gradually falling to 10% over time. Domestic EVs like Tata Motors and Mahindra remain protected for the first five years, ensuring local industry growth. Experts say this deal positions India as a more competitive hub for international auto investment while boosting trade in luxury and mass-market vehicles.
