Good News: European Cars to Get Cheaper in India as Import Duty Slashed to 40%

• India plans to reduce import duty on European cars from 110% to 40% under a Free Trade Agreement (FTA) with the European Union.
• This move is considered the biggest opening for India's auto sector, benefiting brands like Volkswagen, Mercedes-Benz, and BMW.
• The reduced duty will initially apply to selected European cars priced above 15,000 Euros (approx. 15 lakh rupees), with potential further reduction to 10% in the future.
• The policy aims to boost competition and investment in India's growing car market, offering more variety and better pricing for consumers.
• Electric vehicles (EVs) will be excluded from this duty cut for five years to protect domestic manufacturers like Mahindra and Tata.

Why It Matters: India's import duty cut on European cars will make them cheaper, boosting competition and investment in the auto sector.