Bottom Line
India’s auto market is finally opening up: new EU and UK free‑trade deals slash tariffs, but strict caps keep local giants safe.
India Opens Car Market – EU & UK Deals Slash Tariffs, Protect Local Giants
Image: India Opens Car Market – EU & UK Deals Slash Tariffs, Protect Local Giants – Performance Comparison and Specifications
Design & Looks
European premium brands will now see their sleek designs on Indian roads. Land Rover, BMW, and Mercedes can bring larger, more luxurious bodies without the previous 110% import duty. Even Renault’s new Duster, built in India, carries premium touches like adaptive cruise control and remote‑start, turning a budget SUV into a city‑friendly executive model.
Performance & Mileage
Reduced duties mean European engines can compete, but the 40% GST on cars over four metres still pushes buyers toward smaller, fuel‑efficient models. The Duster’s 1.3‑litre engine delivers about 18 km/L, while Volvo’s 2.0‑litre turbo reaches roughly 16 km/L. EVs remain heavily taxed, so electric mileage gains are limited for now.
Price & Rivals
Tariff cuts drop the import levy from 110% to about 35% in year one, eventually to 10%. That translates to a price gap of roughly ₹3‑5 lakh for a mid‑size sedan versus a locally built Maruti. However, the minimum export price of €15,000 and high GST on larger cars keep the market dominated by compact hatchbacks.
| Engine | Mileage (km/L) | Price (₹) | Top Features |
|---|---|---|---|
| Renault Duster 1.3 L | 18 | ≈ ₹9 lakh |
|
| BMW 3‑Series 2.0 L | 16 | ≈ ₹45 lakh |
|
| Volvo XC40 2.0 L | 16 | ≈ ₹38 lakh |
|
FAQ
- What tariff rate will EU cars face in India after the deal? The import duty drops to about 35 % in the first year and will fall to 10 % later.
- Are electric cars cheaper to import now? No. EVs remain taxed at the same high level and only become eligible for lower duties after year five.
- Will the new deals boost Indian car prices? Prices of imported models should fall, but the 40 % GST on cars longer than four metres keeps many premium cars pricey.
What do you think about the new trade rules? Leave a comment below.
Source: Read Official News
