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India to slash tariffs on high-end EU cars to 30% in boost for luxury carmakers
['Shivangi Acharya', 'Aditi Shah']
Zawya.com - All Regional News
NEW DELHI: 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 like BMW and Mercedes-Benz.
But 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.
PRICIEST EUROPEAN CARS BENEFIT FROM BIGGEST DUTY CUTSWhile India agreed under the deal to reduce import tariffs on cars above an import price of 15,000 euros ($17,963) to 10% over time, details of how the reductions will be implemented were not disclosed publicly.
Cars priced 35,000 euros to 50,000 euros will be charged a 30% duty, with imports limited to 33,000 units a year, the official said.
And 33,000 cars priced over 50,000 euros will also be subject to a reduced tariff of 30%.