India Set to Slash Car Import Tariffs Under EU Deal, Rates Dropping from 110% to 40%**
Limited to vehicles over €15,000 with gradual decrease to 10%.— Special Situations 🌐 Research Newsletter (Jay) (@SpecialSitsNews) January 25, 2026
India plans to slash tariffs on cars imported from the European Union to 40% from as high as 110%, sources said, in the biggest opening yet of the country’s vast market as the two sides close in on a free trade pact that could come as early as Tuesday.
Prime Minister Narendra Modi’s government has agreed to immediately reduce the tax on a limited number of cars from the 27-nation bloc with an import price of more than 15,000 euros ($17,739), two sources briefed on the talks told Reuters.
This will be further lowered to 10% over time, they added, easing access to the Indian market for European automakers such as Volkswagen, Mercedes-Benz and BMW.
The sources declined to be identified as the talks are confidential and could be subject to last-minute changes. India’s commerce ministry and the European Commission declined to comment.
https://www.cnbc.com/2026/01/25/india-to-slash-tariffs-on-cars.html