Why the India-EU Trade Deal May Not Lower Car Prices | Vantage with Palki Sharma | N18G

Automobiles



India’s trade deal with the European Union promised big wins, including cheaper luxury cars. Tariffs on fully built imports will drop from 110% to 10%—but only for a limited number of high-end vehicles. Over 90% of European cars sold in India are assembled locally, and they already face lower duties. Brands like Mercedes and Audi say the deal may not impact prices in the near term. With import caps in place and price thresholds required, this is not the sweeping price cut many expected. The market is opening up, but benefits may stay limited to ultra-luxury segments.

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46 thoughts on “Why the India-EU Trade Deal May Not Lower Car Prices | Vantage with Palki Sharma | N18G

  1. 1) A similar deal was done in May 2025 with the UK. At that time, no media coverage, nothing, and even how many people knew about that?

    2) I do not understand why the media is bringing half a story in front of the common public?

    3) Please note that any bilateral or multilateral deal comes with the complex issue of trade deficit if the decision taken proves wrong! So keep in mind that when India opens a quota for 250000 cars with certain restrictions on price range, fuel type, and technology to protect our interests as well.

    4) While giving the market access with reduced duties, the Indian Car market will undergo revolutionary changes, and Indian auto makers will understand the aspirations of Indian buyers in the right perspective. This will enhance market competitiveness.

    5) While India has opened a quota for the EU and UK regions, the Indian Car industry is also getting better access to the EU and UK regions. The real question is whether Indian car makers can now produce the EU/UK-level product? Are they ready for this market? Is such a skill set with them? Can they triple the car exports? They should focus on these rather than enjoying the incentives and fooling indian consumers.

    6) Regarding policies related to CBU/CKD or SKD, these were transitory provisions to protect our interests. With the settling down of these deals, the pros and cons of making the model back again to CBU are up to that OE to decide. They have to decide whether to enter the quota or not; of course, a strong knowledge base is required for deep market analysis, profit booking, sales analysis, region-wise growth, etc.

  2. Most of the German cars are made in INDIA, yes it's for CBU and high end cars which are more than 3 crores…Only ultra luxury cars which are imported as CBU, which usually sell in small numbers. It will allow European manufacturers to sell more sports cars which may go up 1x every year as INDIA is the third largest economy….

  3. Just wait for the FTA implementation if you have plan to buy a nice expensive car. It will be glorious. EU car companies in India are nervous about this deal because mass market is hesitating to buy cars now. Yes, insure about CKD but for CBUs, it’s going to be awesomely attractive. More luxury car brands will come in too, that means more options for CBUs/exotics. 2,50,000/- cars above 15 lakh car to be sold in India is going to be difficult. Anyway CBUs are more reliable. It’s going to be great!

  4. This is one of the few countries where consumers don’t matter—only manufacturers protected by permits do. It’s not about competitiveness, comfort, or safety; it’s about control.

  5. Modi a real toughest negotiater❤

    75 percent people in india will not buy more than 16lakh worth of car…and that is limited 250000 units…this is great deal

  6. A lot of people are crying in the comment section on behalf of the “common man”. I would argue that the common man does not owns car above 16 lakh price. Just for perspective, India’s per capita income is less than three lakh rupees per year.

  7. No one jumped on to it. You media jumped on. It was clear from deal that only Cbu units will benefit. The good thing is we can see a lot of high end cars. Ex VW can sell their GTi at lower prices.

  8. So rolls royace will cost less and benefit the rich while rest of cars cost the same for middle class. The usual story across the globe middle class pays for the rest of the population

  9. 🤣Politicians and super rich be like that cut is for our Children and Grand children buying Ferrari for the other middle class and rich you pay full duty😅

  10. So made in India german cars were over charging in the cloud of tariff till now?! 😂 German car hype is quite something. Only for the rich.

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