Under the newly drafted India-EU Free Trade Agreement, European premium carmakers will receive a 100,000-unit import quota at concessional tariffs. In exchange, Indian manufacturers gain export quotas for mid-range vehicles shipped to Europe.
100,000
EU Concessional Import Quota
⏳ Time Machine
How today’s news fits into the bigger picture
2007
FTA talks launch
India and the European Union launch formal negotiations for a comprehensive Free Trade Agreement.
2013
Negotiations collapse over auto tariffs
Bilateral trade talks stall and are suspended, primarily due to disagreements over India's high tariffs on European cars.
2022
Formal relaunch of trade talks
India and the EU officially restart FTA negotiations, adopting a fresh approach to resolve long-standing industrial deadlocks.
Today
India and the EU finalize a landmark auto tariff quota compromise within their draft trade agreement.
What happens next?
The trade agreement will be formally signed and ratified, with first-year quotas expected to roll out in early 2027.
The long-awaited India-EU Free Trade Agreement has reached a major breakthrough in the highly sensitive automotive sector. According to details released on Saturday, Sep 12, India will grant European carmakers an annual quota of 100,000 internal combustion and hybrid vehicles at significantly reduced import duties, targeting the premium segment. In return, the European Union is offering Indian manufacturers an export quota of 250,000 vehicles, provided they are priced under €50,000. This reciprocal arrangement directly benefits domestic giants like Maruti Suzuki and Tata Motors, giving them unprecedented access to the European market. Conversely, European luxury brands will find it much easier to penetrate India's rapidly growing high-end consumer base, marking a dramatic shift in India's historically protectionist automotive policy.
💭 If you're wondering…
To secure reciprocal export quotas for Indian-made vehicles in Europe, giving domestic manufacturers a massive new market.
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