-India-EU FTA to Boost Luxury EV Imports
- A free trade agreement between India and the European Union, expected to be announced January 27th, will likely significantly reduce import duties on automobiles, particularly electric vehicles (EVs),...
- Currently, India imposes a 100% import duty on European automobiles with a landed cost exceeding $40,000 (approximately ₹37 lakh).
- The agreement is also anticipated to position India as a desirable manufacturing hub for luxury EVs.
India-EU Trade Deal Set to Lower EV Import Duties, Boost Luxury Sales
A free trade agreement between India and the European Union, expected to be announced January 27th, will likely significantly reduce import duties on automobiles, particularly electric vehicles (EVs), from the EU to between 10-15%. This change could trigger a ample increase in European luxury EV sales within India, according to sources familiar with the negotiations.
Currently, India imposes a 100% import duty on European automobiles with a landed cost exceeding $40,000 (approximately ₹37 lakh). This impacts luxury EVs,which typically start around ₹1 crore in India. The reduced tariffs under the India-EU FTA will allow European manufacturers to offer more competitive pricing.
The agreement is also anticipated to position India as a desirable manufacturing hub for luxury EVs.
Budget EVs, largely produced by domestic companies, are expected to remain largely unaffected by the changes.
the FTA is expected to include measures designed to protect local automakers like Tata Motors and Mahindra & Mahindra, balancing market access with the need to support domestic manufacturing.
