The finalized India-EU FTA (signed Jan 27, 2026) is here!
India-EU Trade deal is set to slash luxury car import duties from 110% to just 30% for high-end models. This historic India-EU FTA deal will benefit brands like BMW, Mercedes, and Audi, specifically for vehicles priced above €35,000. While local manufacturers like Tata remain protected in the sub-₹25 lakh segment, the India-EU FTA eventually aims for a 10% duty floor, potentially making performance cars like the Porsche 911 significantly more accessible in India.
- Immediate duty cut to 30% for cars priced over €35,000 ($38k).
- Imports capped at 100,000 units annually to prevent overwhelming local markets.
- Electric Vehicle (EV) duty cuts to 30% will only kick in after 5 years of the pact.
- Mercedes-Benz India warns that a weak Rupee against the Euro may offset some savings.
👉 Why this matters: For the first time in decades, the “Tax on Success” is being lowered, turning India into a legitimate hub for global luxury performance.
Note: 
Written and summarized by our editorial team using human review & a bit of AI assistance. Edited & Approved by Debraj Paul, Founder of ArticoliNews Media-Tech