India and EU Strike Deal to Slash Auto Tariffs, High-End Import Tax to Drop Gradually to 10%

India and the European Union have reached a trade agreement that will significantly lower import tariffs on automobiles. Under the deal, tariffs on cars priced above €15,000 will be immediately reduced from the current maximum of 110% to 40%, and will gradually decline further to 10% over time. Notably, adjustments to import tariffs on electric vehicles will be delayed by five years to protect domestic investments in the automotive industry. This tariff revision primarily benefits high-end imported models, marking India’s effort to advance international trade cooperation while safeguarding its domestic manufacturing sector.