India-EU FTA: EU gets tariff quota for 1 lakh cars

The India-EU free trade agreement has opened up the premium car market, allowing European carmakers to export up to 100,000 internal combustion engine (ICE) and hybrid cars to India in the first year, with the quota rising gradually. According to The Economic Times, this quota will increase to 1,07,500 in the second year, 1,15,000 in the third year, and 1,22,500 in the fourth year.

In return, Indian-origin vehicles priced up to 50,000 euros will have access to a 250,000-unit EU quota, as reported by Business Standard. The agreement also provides for concessional import duties on EU-origin cars, with the tariff rate varying according to the vehicle's price.

The concessional duty on cars priced between Euro 15,000 and Euro 35,000 will fall from 110 per cent to 35 per cent in the first year and 10 per cent in Year 5, while for cars priced above Euro 35,000, it will decline from 66 per cent to 30 per cent in the first year and 10 per cent over the same period, as per The Economic Times.

Brief written by urgent.news from Business Standard IN, The Economic Times — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.