India to Slash Car Import Tariffs for EU Automakers in Landmark FTA

• India will cut import duties on certain EU passenger cars from 110% to 40% under a new free trade agreement (FTA).
• The reduced tariff applies to vehicles priced above €15,000, with duties potentially dropping to 10% over time.
• This move opens India's heavily protected automobile market to European brands like Volkswagen, Mercedes-Benz, and BMW.
• Electric vehicles (EVs) are excluded from tariff cuts for the first five years to protect domestic manufacturers.
• The FTA is expected to boost bilateral trade, diversify India's export markets, and offer the EU access to a growing consumer market.

Why It Matters: India's significant tariff cuts on EU cars mark a major market opening and a breakthrough in trade negotiations.