EU Car Tariffs: Only Luxury Vehicles Get Cheaper Entry, Mass Market Protected
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News18•28-01-2026, 23:33
EU Car Tariffs: Only Luxury Vehicles Get Cheaper Entry, Mass Market Protected
- •India's FTA with the EU will only reduce import duties on passenger cars priced above ₹25 lakh (15,000 Euros), protecting the domestic mass market.
- •A specific annual quota of 2.5 lakh cars is set for EU companies, including 1.6 lakh ICE vehicles and 90,000 EVs, primarily benefiting luxury brands.
- •Import duty concessions are divided into three price categories, with cars below ₹13.5 lakh CIF value receiving no concessions.
- •The concession is expected to have minimal impact on the Indian market, as the quota is less than 2.5% of India's total annual car sales.
- •The deal also benefits Indian manufacturers, as the EU offers a 2.5 times larger quota for Indian car exports, boosting global export potential.
Why It Matters: India's FTA with the EU selectively lowers tariffs on luxury cars, safeguarding the domestic mass market and boosting Indian auto exports.
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