India-EU Trade Deal: Mercedes, BMW, Renault Cars to Get Cheaper with Tariff Cuts

• India plans to significantly reduce import tariffs on EU-made cars from 110% to 40%, making luxury and European brands more affordable.
• The tariff reduction will initially apply to a limited number of cars exceeding 15,000 Euros in import price, with plans for further gradual cuts to 10%.
• This move is part of a Free Trade Agreement (FTA) between India and the EU, expected to be announced soon, dubbed the 'Mother of All Deals'.
• The deal aims to boost bilateral trade and benefit European automakers like Volkswagen, Mercedes-Benz, BMW, Renault, and Stellantis.
• Electric Vehicles (EVs) will be excluded from duty cuts for the first five years to protect domestic manufacturers like Mahindra & Mahindra and Tata Motors.

Why It Matters: India's proposed tariff cuts on EU car imports will make European cars cheaper and open up the auto market.