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 announced a free trade agreement, reducing car duties from 110% toward 10% and abolishing car-parts tariffs within five to ten years.
- With bilateral trade already at USD 190 billion, India-EU two-decade talks gained momentum after India's 50% tariff on some goods, highlighting trade stakes.
- The agreement will cut tariffs on 99.5% of goods from India over seven years, with the EU pledging 500 million euros over two years to support decarbonization, and includes sectors like machinery, electrical equipment, chemicals, and iron and steel.
- Tariff winners include cars, with immediate reduction on wine tariffs to 75% from 150% and tariffs on spirits falling to 40%, following EU vetting expected to last five to six months.
- On carbon policy, India said the EU committed to flexibilities for third countries, but the EU Carbon Border Adjustment Mechanism that started on January 1 offers Indian firms no immediate relief.
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.
Coverage Details
Bias Distribution
- 50% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
