New Delhi has signalled a notable opening of its auto market as negotiations with the European Union enter a decisive phase, marking it among the Latest News in India. Under the proposal, import duty on select EU-built passenger cars would drop to 40%, a steep fall compared with rates that can run up to 110%. The talk is already shifting dealer plans and buyer expectations, especially in the premium segment. It also lands at a moment when trade policy is back in daily headlines.
What The 40% Duty Move Means for the India–EU Deal
People briefed on the talks say the 40% rate would apply to a limited quota and to cars above a set import value. Early briefings indicate a staged schedule that can lower duties further across later phases, with a long pathway that may reach 10% on eligible models. Battery electric vehicles are expected to stay outside the lower-duty lane for an initial period, a protection aimed at domestic EV programmes and local investment.
A short update shared by Reuters amplified the news and triggered quick reactions across business circles.
Who Gains First
- European brands such as Volkswagen, Mercedes-Benz and BMW can test demand with smaller pricing shocks.
- Indian buyers may see softer on-road pricing pressure on certain imports.
- Logistics, ports, and dealer networks could see higher activity if quotas expand.
What Still Looks Sensitive
India’s carmakers are likely to push for strict quota caps and clear compliance checks. The EU side is expected to seek predictable market access that does not reset each budget cycle. The next flashpoint will be the fine print.
