India and EU conclude FTA allowing 100,000 European CBU cars
India and the EU have concluded negotiations on a Free Trade Agreement that's set to shake up the car scene.
It could come into effect from 2027, with European brands allowed to bring in up to 100,000 completely built-up (CBU) internal-combustion engine (ICE) and non-plug-in hybrid cars in the first year with reduced import duties.
Over 10 years, this number will climb to 160,000, opening the door for more choices on Indian roads.
Within-quota duties 35% 30% EVs later
Cars priced €15,000 to €35,000 will see a 35% duty within quota; pricier cars (€35,000 to €50,000 or above) get a slightly lower 30% duty.
The first year's quota splits into three price brackets so there's something for every budget.
Pure electric and plug-in hybrids aren't included right away; they'll get their turn from year five for vehicles priced above €20,000, with a special quota of 20,000 units.
For any cars outside these quotas, duties stay steep but will drop over time.