{"id":65680,"date":"2026-01-27T04:20:48","date_gmt":"2026-01-27T07:20:48","guid":{"rendered":"https:\/\/automotive.einnews.com\/article\/886821183"},"modified":"2026-01-27T04:20:48","modified_gmt":"2026-01-27T07:20:48","slug":"indian-carmakers-slide-on-report-of-sharp-tariff-cuts-for-european-imports","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/01\/27\/indian-carmakers-slide-on-report-of-sharp-tariff-cuts-for-european-imports\/","title":{"rendered":"Indian carmakers slide on report of sharp tariff cuts for European imports"},"content":{"rendered":"
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Shares of India’s top carmakers dropped \u200das much as 5% on Tuesday (January 27, 2026) after Reuters<\/i> \u200breported that India is set to \u200cslash tariffs on European \u200bcar imports as part of a trade deal, in what would be the most aggressive opening yet of a protected sector.<\/p>\n

Shares of Mahindra and Mahindra fell as much as 5.1% to their lowest since August \u200b2025, leading losses on the Nifty auto \u2060index, which was down 2.2%.<\/p>\n

Read: India-EU Summit LIVE updates<\/a><\/b><\/strong><\/p>\n

India plans to cut tariffs on European Union car imports to 40% from \u200bas high as \u2060110% as the two sides near a free-trade pact that could be sealed as early as Tuesday (January 27, 2026), sources told Reuters<\/i>.<\/p>\n

The \u200cgovernment has agreed to immediately reduce \u200cthe tax on a limited number of cars with an import price \u200dof more than 15,000 euros ($17,739), the sources said.<\/p>\n

Lower import taxes would offer a lift \u200dto European automakers including Volkswagen, Renault and Stellantis, as well as luxury brands Mercedes-Benz and BMW.<\/p>\n

Indian manufacturers have long opposed such cuts, arguing that they would discourage investment in local production by making imported vehicles more competitive.<\/p>\n

European carmakers currently hold a less than 4% \u2060share of India’s 4.4-million units a year car market, which is dominated by \u200bJapan’s Suzuki Motor as well as homegrown brands Mahindra \u2060and Tata that together hold two-thirds.<\/p>\n

Maruti Suzuki India shares fell as much as 2.95% on Tuesday (January 27, 2026) and Tata Motors Passenger Vehicles was down 2%.<\/p>\n<\/div>\n

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Published – January 27, 2026 12:39 pm IST<\/span><\/p>\n<\/div>\n