India to slash tariffs on cars to 40% in trade deal with EU, sources say
Summary
India plans to reduce tariffs on EU cars to 40% from up to 110% as part of a free trade agreement, easing market access for European automakers and boosting bilateral trade.
Key Points
- India will cut tariffs on cars imported from the EU to 40% immediately, down from as high as 110%.
- The trade deal between India and the EU is expected to be finalized soon, termed as 'the mother of all deals.'
- Battery electric vehicles will be excluded from tariff cuts for five years to protect domestic manufacturers.
- European automakers like Volkswagen, Mercedes-Benz, and BMW will benefit from lower tariffs and expanded market access in India.
