Good News for Car Buyers: European Car Prices Set to Drop in India

• India plans to reduce import duty on EU cars from 110% to 40% as part of a Free Trade Agreement with Brussels.
• Initially, the tax reduction will apply to fully built cars priced above 15,000 Euros (approx. Rs 16.3 lakhs).
• This move aims to open up India's protected automobile market, benefiting European brands like Volkswagen, Mercedes-Benz, and BMW.
• India is prepared to offer tax reductions on approximately 200,000 IC engine cars annually; EVs are excluded for the first five years.
• The duty reduction could encourage European automakers to test new models and potentially increase local manufacturing investments in India.

Why It Matters: India's import duty cut on EU cars will make luxury European vehicles more affordable and accessible.