Luxury Cars to Get Cheaper: India to Slash Import Tariffs on EU Vehicles

• India plans to cut import tariffs on cars from the European Union (EU) from 110% to 40% as part of a Free Trade Agreement (FTA).
• The initial tariff reduction will apply to select petrol and diesel cars from 27 EU countries, priced above 15,000 Euros.
• Tariffs are expected to be gradually reduced further to 10% in the coming years, opening the Indian market for European brands like Mercedes-Benz and BMW.
• This agreement, dubbed the 'Mother of All Deals,' aims to boost bilateral trade and benefit India's textile and jewelry sectors.
• Electric Vehicles (EVs) will be exempt from tariff cuts for the first five years to protect domestic manufacturers like Tata Motors and Mahindra & Mahindra.

Why It Matters: India is set to significantly reduce import tariffs on EU cars, making luxury vehicles more accessible and boosting trade.