How will the EU test India's premium car market under the new FTA?

The EU will utilize limited export quotas secured under the free trade agreement to gauge consumer demand and operational viability in India's premium car market before considering local manufacturing investments.

What are the new import duty rates for EU cars in India?

Import duties on completely built EU cars will drop from 70-110% to an initial 30-35%, with further reductions to 10% over 5-10 years, subject to annual quotas and a price floor.

Are electric vehicles included in the EU-India FTA duty concessions?

No, battery electric vehicles are excluded from duty concessions for the first five years of the agreement, with current tariffs of up to 110% remaining in place to protect India's domestic EV sector.

Home / Business and Economy / EU Cars: Quotas to Test India Market First

EU Cars: Quotas to Test India Market First

8 Mar

•

Summary

EU will use export quotas to gauge India's premium car market.
Import duties on EU cars to drop from 70-110% to 30-35%.
Electric vehicle tariffs remain high for five years under the deal.

EU Cars: Quotas to Test India Market First

The European Union is set to leverage export quotas, secured through a recently finalized free trade agreement with India, to initially test the Indian premium car market. This strategy precedes any commitment to substantial investments in local manufacturing facilities within India.

Under the agreement, import duties on completely built units from the EU will see an immediate reduction from 70-110% to 30-35%, with further phased reductions planned over five to ten years, reaching 10%. These concessions are capped by an annual quota of 2.5 lakh vehicles and a minimum price floor of €15,000.

Crucially, battery electric vehicles (BEVs) are excluded from duty concessions for the initial five years, maintaining tariffs up to 110%. This measure aims to shield India's developing domestic EV ecosystem and battery manufacturing capabilities.

The India-EU FTA is anticipated to be implemented by early 2027, pending necessary approvals in both regions. Discussions with automotive manufacturers indicate satisfaction with the safeguards incorporated into the final deal.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.

EU Cars: Quotas to Test India Market First

8 Mar

•

Summary

EU will use export quotas to gauge India's premium car market.
Import duties on EU cars to drop from 70-110% to 30-35%.
Electric vehicle tariffs remain high for five years under the deal.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.