Business

India Plans Cut In Car Import Tariffs In Trade Deal With EU: Reports

January 25, 2026

India is set to reduce import duties on cars from the European Union from 110% to 40% as part of a trade agreement, marking a significant shift in its previously protective automotive market. This change is expected to benefit premium car brands such as BMW and Mercedes, allowing for a quota of approximately 200,000 combustion-engine cars to be imported annually.

India Plans Cut In Car Import Tariffs In Trade Deal With EU: Reports

Credit: Feedburner

Key Highlights

India plans to cut car import duties from 110% to 40%.
The tariff reduction applies to a quota of about 200,000 cars per year.
This change aims to reshape the competitive dynamics in India's premium car segment.
India is the third-largest car market in the world by sales.
Current import tariffs have been criticized by industry executives, including Tesla's Elon Musk.

Business Markets

Sources

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

India Plans Cut In Car Import Tariffs In Trade Deal With EU: Reports

Key Highlights

Sources

Related Stories

India pivots crude sourcing for certainty, keeps Russian barrels selectively

Looking forward to a strong year next fiscal despite global uncertainty:...

Skoda Auto Volkswagen pitches for policy continuity, customs duty reforms