India EU FTA slashes auto duties, fuels luxury EV surge

mumbai: The free trade agreement (FTA) between India and the ⁤european Union is​ expected to significantly lower import duties ​on cars, including​ electric vehicles (EVs), ⁤from‌ the 27-nation bloc to 10-15%. This could ⁣led to a big⁣ increase in European luxury EV sales in India, according to sources.
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‍ The deal,likely ⁢to be announced at the summit ⁤on⁤ January 27,could also⁢ make India a more appealing place to manufacture luxury EVs. Currently, India charges⁣ around 100% import duty on European automobiles⁤ costing over $40,000 (about ₹37 lakh).This affects luxury EVs, which generally start around ₹1 crore, industry experts say.
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‍ ⁢With the India-EU FTA expected to cut import taxes, European luxury EV companies​ will be able to ⁣offer ​more competitive prices ⁣in India.

Protection for Local ⁤Automakers

More affordable EVs, where Indian‌ companies are strong, likely ‌won’t be as⁣ affected⁢ since ​they’re made⁤ locally.
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The FTA will problably‌ include rules to balance fair access with protecting Indian manufacturers like tata Motors and Mahindra & Mahindra, people familiar with the matter said.