India-EU FTA to Revolutionize Auto Sector with Deep Tariff Cuts, Quota Access

• The India-European Union Free Trade Agreement (FTA) will significantly reshape the automobile sector, featuring sharp tariff reductions and quota-based market access for carmakers.
• European carmakers will gain export quotas for fully built units (CBUs), completely knocked-down (CKD) units, and components into India.
• Indian automakers will benefit from quotas approximately 2.5 times larger than the general EU quota, enhancing access to European markets.
• Tariffs on European cars imported into India will drop from 110% to 35%, eventually reaching 10% after a transition, with CKD unit tariffs cut from 16% to 8.25%.
• EU tariffs on Indian-made vehicles will be reduced from 10% to zero over a transition period, with EV tariff cuts starting later.

Why It Matters: The India-EU FTA promises a major overhaul of the auto sector through significant tariff cuts and expanded market access.