Business
Crypto
Markets
INDIA
Stocks
In a major move to open up the auto market, India will immediately reduce import duties on 100,000 European cars each year. The new tariff will be between 30% and 35%, a sharp drop from the earlier rate that went as high as 110%, according to a senior Indian official.
Cars priced between 15,000 and 35,000 euros will now attract a 35% import duty, while those priced above 35,000 euros will be taxed at 30%. This change is expected to make premium European vehicles more affordable for Indian buyers.
The government also plans to gradually reduce the import duty further to just 10% over the next five years. Alongside this, the annual import quota will be increased from 100,000 to 160,000 cars over a ten-year period.
Electric vehicles (EVs) will also benefit from this policy. After five years, EVs priced above 20,000 euros will enjoy the same reduced import tax structure. This move is likely to encourage more EV options in India and support the country’s green mobility goals.
These changes are part of a broader strategy to attract global automakers, boost competition, and offer Indian consumers more choices at better prices.
