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.
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.
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.