India is planning to reduce import duties on cars from the European Union to 40 percent from the current 110 percent as part of negotiations for a free trade agreement. This move could make luxury European vehicles more affordable in the Indian market. Brands like Volkswagen, Mercedes-Benz, and BMW stand to benefit significantly.
India is set to propose a significant reduction in car import tariffs from the European Union as part of an impending free trade agreement. The duties, currently at 110 percent, could be slashed to 40 percent, potentially making European vehicles much cheaper in the Indian market. This change would reshape market access for global automakers and influence their future investment and pricing strategies.
The anticipated cuts would substantially ease entry into India for brands such as Volkswagen, Mercedes-Benz, and BMW. High tariffs have long protected local manufacturing, but this move signals a more open trade policy. While the proposal is still under negotiation, it aligns with efforts to strengthen economic ties with the EU.
No direct quotes from officials are available yet, but reports indicate the deal is nearing completion. This development could boost competition in India's automobile sector, benefiting consumers with lower prices on imported luxury cars.
