EU Trade Deal: 99% Indian Goods Tax-Free, Premium Cars in India to Become Cheaper

Good news for enthusiasts dreaming of speeding down highways in premium European cars or high-end bikes. European car makers, struggling with U.S. tariffs and China's slow growth, now see India as a new hope. Previously, high taxes made some cars inaccessible, but brands like Volkswagen and Renault now have their biggest opportunity to expand in India.

According to Reuters, India and the EU are preparing to sign a trade deal that will significantly reduce import duties on European cars. This is considered the largest concession given to foreign companies in India's safe automotive market. Under the deal, import duties on European cars could drop from 110% to 40%.

This means luxury cars like Audi, Mercedes, and Porsche will become more visible on Indian roads. Auto experts believe that the biggest impact will be on luxury cars, as fully built imported vehicles may see significant price reductions, making them more affordable for enthusiasts.

Challenges Remain

Even with reduced taxes, the Indian market is still dominated by local and Asian brands like Maruti Suzuki, Tata, and Mahindra. Indian consumers prioritize mileage, low maintenance, and durability, so European brands may need to work on service quality and running costs.

Luxury Car Brands to Benefit the Most

Auto industry experts say that brands like Audi, Porsche, Mercedes-Benz, and BMW will benefit the most. The premium car segment will see direct price relief, while mid-range and mass-market segments may experience limited impact.

With rising U.S. tariffs and slow growth in China, India’s car market is expected to reach 6 million units by 2030. European companies see India as a long-term growth market. Analysts believe the short-term impact may be limited, but long-term investments in local manufacturing could improve prices and competition.

Impact on Premium Bikes

The deal may also make it easier to import premium European bikes in the future, such as models from BMW Motorrad or Ducati. Enthusiasts looking for long trips on highways or mountains may soon have easier access to world-class machines.