Summary

India and the European Union have finalized a free trade deal, reducing import duties on European cars to 10% from the current 70%-110%. While this deal benefits European luxury car brands, the overall impact on the Indian market is limited due to existing local taxes and the dominance of affordable Indian and Korean brands. The deal may encourage European companies to reassess their India business plans and invest in localization.

https://www.cnbc.com/2026/01/29/cnbcs-inside-india-newsletter-eu-edges-out-us-as-new-delhi-readies-to-slash-duties-on-imported-cars.html