January 27, 2026
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Imported European cars likely to become cheaper as India-EU FTA phases down tariffs and sets a 250,000-unit quota.
The India-EU FTA phases down tariffs on imported European passenger cars from an effective 110 per cent to 10 per cent within a quota of 250,000 CBUs per year, with interim phased rates around 30-35 per cent in some segments, a threshold of about 15,000 for application, reciprocal quota balancing at 2.5:1, exclusion of cars likely to retail below Rs 25 lakh from EU exports, and deferred, segmented duty reductions for EVs protected for the first five years.