Monday 07/Apr/2025 – 05:41 PM
The European Union of India wants to cancel customs duties on car imports under a long -awaited trade agreement, and that the government of Prime Minister Narendra Modi is ready to improve its current proposal to complete the talks, sources told Reuters.
The European Union is preparing to cancel customs duties on car imports from India
Two sources in industry and a government official said that India is open to the gradual reduction of customs duties to 10% of more than 100%.
This comes despite the pressures of industry in order for India to maintain customs duties of no less than 30% even if it begins to reduce the tax, as well as not to amend the import fees for electric cars for another four years to protect local companies.
While the European Union’s demands come weeks after the administration of US President Donald Trump seeks to cancel a similar customs duties on cars, including electric cars, as part of bilateral trade talks with India, which increased pressure on local auto manufacturers.
Customs duties will be a victory for European auto companies such as Volkswagen, Mercedes Benz and BMW, which will expand their arrival in India. It may also serve as a victory for Tesla, owned by Elon Musk, which will start sales of imported electric cars in India this year, probably from its factory in Berlin.
