European cars could get cheaper in India
India is thinking about lowering the super-high import duties on European Union (EU) cars as part of a new free trade agreement (FTA).
Right now, importing a car from the EU means paying 110% tax if it's over $40,000, or 70% if it's less.
The possible tax cut is meant to ease EU concerns and matches what India's been discussing with the UK—gradually reducing tariffs depending on car specs.
German politician raised this issue during his recent visit
The latest round of India-EU trade negotiations started September 8, 2024, aiming to wrap up by December.
Germany—home to brands like BMW and Mercedes-Benz—is especially keen for these changes.
German politician Johann David Wadephul brought this up during his recent visit with PM Modi and Commerce Minister Piyush Goyal.
If these cuts go through, European cars could get more affordable in India and shake up the local market with fresh competition.