India to Slash EU Car Import Tariffs to 40% as Major Trade Deal Nears

• India plans to reduce import tariffs on cars from the European Union from 110% to 40% as part of a new free trade pact.
• The tariff cut will initially apply to a limited number of cars with an import price over 15,000 euros, eventually lowering to 10%.
• This move aims to open India's vast car market to European automakers like Volkswagen, Mercedes-Benz, and BMW.
• The free trade agreement, dubbed the "mother of all deals," is expected to be announced soon, potentially expanding bilateral trade.
• Battery electric vehicles will be excluded from duty reductions for five years to protect domestic players like Mahindra & Mahindra and Tata Motors.

Why It Matters: India is set to significantly cut car import tariffs for EU, signaling a major free trade deal and market opening.