The automobile tariff agreement between India and the EU is set to shift the balance

India has pledged to gradually reduce customs duties on European-origin luxury automobiles from 110 percent to 10 percent under a free trade agreement to be signed with the European Union.

This strategic move by the government of Narendra Modi will ease access to the world’s third-largest automobile market for major manufacturers such as Volkswagen, Mercedes-Benz, BMW, and Audi, while предусматриng a five-year transition period to protect domestic industry in electric vehicle production.

In India’s market, which records annual sales of 4.4 million vehicles, the share of European manufacturers remains below 4 percent.

Two-thirds of the market is controlled by Japan’s Suzuki Motor and domestic brands Mahindra and Tata.

This trade initiative with the EU is described as the largest opening of the Indian market to date.

Source: Anadolu Ajansı / Bloomberght