India will immediately slash duties on high-end European cars to 30% from as high as 110% under its new trade deal with the EU, an official said, opening the tightly controlled market to luxury carmakers such as BMW and Mercedes-Benz, as Reuters reported.
India and the European Union finalised a long-delayed deal on Tuesday that will cut tariffs on most goods and boost trade, at a time when governments worldwide are seeking to hedge against fickle US policy and manage growing trade tensions.
India is the third-largest car market globally by sales, after the United States and China.
However, its domestic auto industry has been among the world’s most protected, with the government levying tariffs of between 70% and 110% on imported cars.
While India agreed under the deal to reduce import tariffs on cars with an import price above €15,000 ($17,963) to 10% over time, details on how the reductions will be implemented were not disclosed publicly.