{"id":66122,"date":"2026-01-27T09:41:45","date_gmt":"2026-01-27T12:41:45","guid":{"rendered":"https:\/\/automotive.einnews.com\/article\/886881532"},"modified":"2026-01-27T09:41:45","modified_gmt":"2026-01-27T12:41:45","slug":"eu-carmakers-face-tough-india-market-even-as-trade-deal-slashes-import-tariffs","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/01\/27\/eu-carmakers-face-tough-india-market-even-as-trade-deal-slashes-import-tariffs\/","title":{"rendered":"EU carmakers face tough India market even as trade deal slashes import tariffs"},"content":{"rendered":"<div class=\"article-bullets-style\">\n<ul>\n<li>EU-India trade deal to slash car import tariffs to 40 per cent, sources say<\/li>\n<li>Local brands, Suzuki, Hyundai dominate Indian market<\/li>\n<li>India\u2019s car market expected to grow to 6 million units by 2030<\/li>\n<\/ul>\n<\/div>\n<p>BERLIN, Jan 27 \u2014 European carmakers, squeezed by US tariffs and price wars in China, will get a welcome boost from an EU-India trade deal that sharply drops tariffs on car imports, but face a tough market dominated by homegrown firms and compact Japanese \u201ckei cars.\u201d India and the European Union are set to sign a trade deal today, including slashing tariffs on imports of EU-made cars to 40 per cent from as high as 110 per cent, the biggest opening yet of India\u2019s vast market for Volkswagen and Renault.<\/p>\n<p>The move, however, only edges the door open, analysts said, with local car brands and Asian rivals Suzuki Motor and Hyundai dominating the market, with hot-selling models like the Maruti Suzuki Wagon R kei car \u2014 a class of pint-sized, affordable vehicles smaller than a Mini Cooper.<\/p>\n<p>\u201cIt\u2019s a start. When we talk about exports from Europe, it\u2019s only about premium cars. For the volume sector it is difficult,\u201d said Stefan Bratzel of German auto research group CAM, who said Suzuki and Hyundai had better understood the market.<\/p>\n<p>\u201cIn India it\u2019s about cheap, reliable, stable cars. The Volkswagen Group cars have been too expensive. Suzuki has benefited from the kei cars which are highly popular in Japan.\u201d<\/p>\n<div class=\"image_body\">\n<div> <img data-opt-id=758893364  fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i0.wp.com\/www.malaymail.com\/malaymail\/uploads\/images\/2026\/01\/27\/322311.JPG?ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i0.wp.com\/www.malaymail.com\/malaymail\/uploads\/images\/2026\/01\/27\/322311.JPG?ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i0.wp.com\/www.malaymail.com\/malaymail\/uploads\/images\/2026\/01\/27\/322311.JPG?ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i0.wp.com\/www.malaymail.com\/malaymail\/uploads\/images\/2026\/01\/27\/322311.JPG?ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i0.wp.com\/www.malaymail.com\/malaymail\/uploads\/images\/2026\/01\/27\/322311.JPG?ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i0.wp.com\/www.malaymail.com\/malaymail\/uploads\/images\/2026\/01\/27\/322311.JPG?ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i0.wp.com\/www.malaymail.com\/malaymail\/uploads\/images\/2026\/01\/27\/322311.JPG?ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i0.wp.com\/www.malaymail.com\/malaymail\/uploads\/images\/2026\/01\/27\/322311.JPG?ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i0.wp.com\/www.malaymail.com\/malaymail\/uploads\/images\/2026\/01\/27\/322311.JPG?ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i0.wp.com\/www.malaymail.com\/malaymail\/uploads\/images\/2026\/01\/27\/322311.JPG?ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i0.wp.com\/www.malaymail.com\/malaymail\/uploads\/images\/2026\/01\/27\/322311.JPG?ssl=1&w=1600&resize=1600&ssl=1 1600w\" fifu-data-src=\"https:\/\/i0.wp.com\/www.malaymail.com\/malaymail\/uploads\/images\/2026\/01\/27\/322311.JPG?ssl=1\" alt=\"Tata electric vehicles are parked as they recharge at a Tata EV charging station in Mumbai September 9, 2025. \u2014 Reuters pic \" title=\"Tata electric vehicles are parked as they recharge at a Tata EV charging station in Mumbai September 9, 2025. \u2014 Reuters pic \"> <\/div>\n<p>Tata electric vehicles are parked as they recharge at a Tata EV charging station in Mumbai September 9, 2025. \u2014 Reuters pic <\/p>\n<\/p><\/div>\n<p><strong>EU carmakers have less than 3 per cent share of the market<\/strong><\/p>\n<p>With a modest production footprint and annual sales still in the tens of thousands of cars, European brands have huge room to expand after losing market share in the last decade.<\/p>\n<p>European carmakers hold under a 3 per cent share of India\u2019s car market, Indian automobile industry data shows. The South Asian country\u2019s market is dominated by Suzuki Motor and homegrown brands Mahindra and Tata, which together hold two-thirds.<\/p>\n<p>India has the world\u2019s third-largest car industry after the US and China, but its 4.4 million-vehicles-a-year domestic auto market has been one of the most protected, with current levies of 70 per cent and 110 per cent on imported cars.<\/p>\n<p>\u201cIndia is a dynamically growing market and of considerable strategic importance to the Volkswagen Group,\u201d a spokesperson for the carmaker which controls Audi, Porsche and Skoda said, adding it would look at the business impact from the trade deal.<\/p>\n<p>Mercedes-Benz said reduced tariffs should boost carmakers from both regions. BMW declined to comment.<\/p>\n<p>Warburg Research analyst Fabio Hoelscher said a cut to 40 per cent would make luxury European carmakers more competitive.<\/p>\n<p>\u201cThe biggest winners versus before are brands like Porsche who import their entire portfolio as completely built units,\u201d he said, though he cautioned the move would take time to boost profits, while ongoing US uncertainty would temper shares.<\/p>\n<p>\u201cAfter that, in the medium term, there is potential to expand local manufacturing.\u201d<\/p>\n<p><strong>India car market has big potential for growth<\/strong><\/p>\n<p>High US import tariffs and a cut-throat market in China have pushed many automakers to consider new growth markets such as India, where the market is expected to grow by over a third to 6 million vehicles a year by 2030.<\/p>\n<p>Prime Minister Narendra Modi\u2019s government has agreed to cut the tariff rate on a limited number of cars from the 27-nation bloc with an import price of more than \u20ac15,000 (RM70,488), two sources briefed on the talks told Reuters.<\/p>\n<p>This will be further lowered to 10 per cent over time, they added.<\/p>\n<p>ING Research analyst Rico Luman was bullish, saying that an EU-India trade deal \u201ccould turn into a significant opportunity for European car makers\u201d in the medium run.<\/p>\n<p>\u201cThe Indian car market \u2060is still in the early stages of maturing, which means there is substantial growth potential,\u201d Luman said. \u2014 Reuters<\/p>\n<p><strong><a href=\"https:\/\/blockads.fivefilters.org\"> <\/a><\/strong> <a href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\"> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8230; \u00e2\u0080\u0099s car market, Indian <span class=\"match\">automobile<\/span> industry data shows. The &#8230; said reduced tariffs should boost <span class=\"match\">carmakers<\/span> from both regions. BMW &#8230; cent would make luxury European <span class=\"match\">carmakers<\/span> more competitive. \u00e2\u0080\u009cThe biggest &#8230; China have pushed many <span class=\"match\">automakers<\/span> to consider new growth &#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-66122","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/66122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=66122"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/66122\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=66122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=66122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=66122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}