{"id":65862,"date":"2026-01-27T07:54:29","date_gmt":"2026-01-27T10:54:29","guid":{"rendered":"https:\/\/automotive.einnews.com\/article\/886861926"},"modified":"2026-01-27T07:54:29","modified_gmt":"2026-01-27T10:54:29","slug":"indian-carmakers-slide-on-sharp-tariff-cuts-for-european-imports","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/01\/27\/indian-carmakers-slide-on-sharp-tariff-cuts-for-european-imports\/","title":{"rendered":"Indian carmakers slide on sharp tariff cuts for European imports"},"content":{"rendered":"

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Shares of India’s top carmakers dropped as \u2060much as 5 per cent on Tuesday after India and the European Union announced sharp tariff cuts on European car imports<\/a> as part of a \u200ctrade deal, \u200cpotentially the most aggressive opening yet of a protected sector.<\/p>\n

Mahindra and Mahindra’s stock \u200cfell as much as 5.1 per cent to its lowest since August 2025, leading losses on the Nifty auto index, which was down 2.1 per cent.<\/p>\n

Maruti Suzuki India fell as much as 2.95 per cent and Tata \u200bMotors Passenger Vehicles was down 2.3 per cent.<\/p>\n

New \u200bDelhi is slashing tariffs on cars to 10 per cent \u200cover five \u200dyears from as high as 110 per cent with a \u200dquota of 250,000 vehicles a year, according to \u200can EU statement.<\/p>\n

This will likely benefit European automakers<\/a> such as Volkswagen, Renault and Stellantis , as well as luxury brands Mercedes-Benz and BMW.<\/p>\n

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

Any reduction in prices \u200dof imported cars will have an impact on domestic carmakers, said Gaurav Vangaal, an analyst at \u200dS&P Global Mobility. \u2060India’s car \u2060market is maturing and we are continuously moving upward on average selling prices for SUVs, he added.<\/p>\n

European carmakers currently hold a less than 4 per cent share of India’s 4.4-million-units-a-year car market, which is dominated by Japan’s Suzuki Motor and homegrown brands Mahindra and Tata. All three together hold two-thirds of the market share. <\/p>\n

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