{"id":90668,"date":"2026-02-16T04:55:35","date_gmt":"2026-02-16T07:55:35","guid":{"rendered":"https:\/\/automotive.einnews.com\/article\/892699786"},"modified":"2026-02-16T04:55:35","modified_gmt":"2026-02-16T07:55:35","slug":"will-cheaper-european-cars-hurt-indian-automakers","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/02\/16\/will-cheaper-european-cars-hurt-indian-automakers\/","title":{"rendered":"Will Cheaper European Cars Hurt Indian Automakers?"},"content":{"rendered":"<p><strong><strong>Speculation about rising competition from global majors has led to shares of major Indian automobile manufacturers such as Mahindra &amp; Mahindra (M&amp;M), Maruti Suzuki India, and Tata Motors taking a hit on the BSE.<\/strong><br \/><\/strong><\/p>\n<p><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:\/\/i3.wp.com\/im.rediff.com\/money\/2024\/aug\/19luxury-cars1.jpg?w=670&h=900&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2024\/aug\/19luxury-cars1.jpg?w=670&h=900&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2024\/aug\/19luxury-cars1.jpg?w=670&h=900&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2024\/aug\/19luxury-cars1.jpg?w=670&h=900&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2024\/aug\/19luxury-cars1.jpg?w=670&h=900&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2024\/aug\/19luxury-cars1.jpg?w=670&h=900&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2024\/aug\/19luxury-cars1.jpg?w=670&h=900&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2024\/aug\/19luxury-cars1.jpg?w=670&h=900&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2024\/aug\/19luxury-cars1.jpg?w=670&h=900&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2024\/aug\/19luxury-cars1.jpg?w=670&h=900&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2024\/aug\/19luxury-cars1.jpg?w=670&h=900&ssl=1&w=1600&resize=1600&ssl=1 1600w\" class=\"imgwidth\" title=\" \" fifu-data-src=\"https:\/\/i3.wp.com\/im.rediff.com\/money\/2024\/aug\/19luxury-cars1.jpg?w=670&h=900&ssl=1\" alt=\" \"><\/p>\n<div class=\"imgcaption\"><em>Kindly note the image have only been published for representational purposes.<\/em> <span class=\"credit\">Photograph: ANI Photo <\/span><\/div>\n<div class=\"keypoints\">\n<h3>Key Points<\/h3>\n<ul>\n<li>India to reduce import duties on European cars to as low as 10% over five years (quota-based).<\/li>\n<li>Up to 250,000 EU vehicles allowed at preferential rates (vs 37,000 under UK deal).<\/li>\n<li>Imported EU vehicles currently face duties of up to 125%.<\/li>\n<li>Concessions mainly apply to cars priced above \u20b925 lakh.<\/li>\n<\/ul>\n<\/div>\n<h2>Duty Cuts to 10% Over Five Years<\/h2>\n<p class=\"rbig\">Indian auto component majors and European car makers have welcomed the India-European trade deal, citing that the move will strengthen India\u2019s integration with global automotive value chains, while simultaneously stimulating demand in the imported luxury vehicle segment, making it cheaper in the Indian market.<\/p>\n<p>Under the deal, India has agreed to a quota-based reduction in import duties on European automobiles, with tariffs set to fall to as low as 10 per cent over five years.<\/p>\n<p>This may make premium European brands such as Mercedes-Benz, BMW, Audi, Ferrari, Porsche, Lamborghini, Rolls-Royce, and Bentley cheaper in the long run.<\/p>\n<h2>2.5 Lakh EU Cars Allowed Under Preferential Quota<\/h2>\n<p class=\"rbig\">Based on the quota, India will allow up to 250,000 vehicles from Europe at preferential rates, versus hardly 37,000 vehicles mentioned in the UK trade deal.<\/p>\n<p>Currently, \u201clocally manufactured cars\u201d attract a basic customs duty of 16.5 per cent, while imported vehicles from the EU attract up to 125 per cent duty. Reduced duty will bring down showroom prices considerably in India.<\/p>\n<h2>Auto Stocks Slide on Competition Fears<\/h2>\n<p class=\"rbig\">According to reports, the mass market will be largely unaffected, as the concessions will apply mainly to cars priced above \u20b925 lakh.<\/p>\n<p>Despite this, speculation about rising competition from global majors has led to shares of major Indian automobile manufacturers such as Mahindra &amp; Mahindra (M&amp;M), Maruti Suzuki India, and Tata Motors taking a hit on the BSE on Tuesday, down by 4.19 per cent, 1.48 per cent, and 1.06 per cent, respectively.<\/p>\n<p><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:\/\/i3.wp.com\/im.rediff.com\/money\/2025\/mar\/13volvo-xc90-2.jpg?w=670&h=900&ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2025\/mar\/13volvo-xc90-2.jpg?w=670&h=900&ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2025\/mar\/13volvo-xc90-2.jpg?w=670&h=900&ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2025\/mar\/13volvo-xc90-2.jpg?w=670&h=900&ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2025\/mar\/13volvo-xc90-2.jpg?w=670&h=900&ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2025\/mar\/13volvo-xc90-2.jpg?w=670&h=900&ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2025\/mar\/13volvo-xc90-2.jpg?w=670&h=900&ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2025\/mar\/13volvo-xc90-2.jpg?w=670&h=900&ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2025\/mar\/13volvo-xc90-2.jpg?w=670&h=900&ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2025\/mar\/13volvo-xc90-2.jpg?w=670&h=900&ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i3.wp.com\/im.rediff.com\/money\/2025\/mar\/13volvo-xc90-2.jpg?w=670&h=900&ssl=1&w=1600&resize=1600&ssl=1 1600w\" class=\"imgwidth\" title=\" \" fifu-data-src=\"https:\/\/i3.wp.com\/im.rediff.com\/money\/2025\/mar\/13volvo-xc90-2.jpg?w=670&h=900&ssl=1\" alt=\" \"><\/p>\n<div class=\"imgcaption\">IMAGE: Mandira Bedi with Volvo XC90 in New Delhi. <span class=\"credit\">Photograph: Ritik Jain\/ANI Photo <\/span><\/div>\n<h2>Luxury Segment to Gain, Mass Market Largely Unaffected<\/h2>\n<p class=\"rbig\">On the other hand, for the components industry, this will boost exports, technology partnerships, and investment-led growth, as the EU comprises 30 per cent of India&#8217;s component exports.<\/p>\n<p>In FY25, component exports from India to the region were seen at $6.75 billion versus imports of $5.77 billion from the EU.<\/p>\n<p>The free trade deal is expected to boost the luxury vehicle market, which contributes only about one per cent of the passenger vehicle market. However, those having local units are not expecting any immediate price reduction.<\/p>\n<p>Industry sources told&nbsp;<em>Business Standard<\/em>&nbsp;that as the rupee depreciated by 19 per cent in 2025 compared to the euro, any benefit arising from lower duty imports for CBUs in the next couple of years may be eroded. Hence, companies were reluctant to give any price predictions.<\/p>\n<p>\u201cWhile we do not foresee any immediate price changes in the near term, the FTA could create opportunities to introduce new and niche products and, if demand scales, support deeper localisation over time,\u201d said Hardeep Singh Brar, president and chief executive officer, BMW Group India.<\/p>\n<h2>No Immediate Price Cuts, Say BMW and Mercedes<\/h2>\n<p class=\"rbig\">Santosh Iyer, managing director and chief executive officer, Mercedes-Benz India, said, \u201cThe FTA is expected to strongly drive technological innovation and sustainable growth within the Indian automotive sector, with a sharp focus on future mobility.\u201d<\/p>\n<p>The company does not foresee any price reduction for Mercedes-Benz vehicles due to the FTA in the foreseeable future, as more than 90 per cent of Mercedes-Benz India\u2019s sales volume comprises \u2018Made in India\u2019 locally manufactured models, and only 5 per cent of sales come via CBU imports from the EU.<\/p>\n<p>\u201cAny implications for pricing and the market can only be assessed once the final terms are available and carefully reviewed, including the timeframe of implementation. This will create a stable and predictable environment for European automakers to invest, innovate, and better serve customers in India,\u201d said Balbir Singh Dhillon, brand director, Audi India.<\/p>\n<h2>Component Makers Eye Export &amp; Tech Boost<\/h2>\n<p class=\"rbig\">For India\u2019s auto-component industry, the agreement will lead to enhanced export competitiveness, facilitate deeper technology collaboration, and attract long-term investments, while enabling European companies to leverage India\u2019s fast-growing automotive market &#8212; the world\u2019s third largest.<\/p>\n<p>&#8220;The signing of the India\u2013EU FTA is a timely and strategic step. For the auto-components industry, it has the potential to unlock new opportunities for exports, technology partnerships, and investment-led growth.<\/p>\n<p>&#8220;As global OEMs and suppliers look to build resilient supply chains, a well-balanced and pragmatic FTA can position India as a reliable manufacturing and sourcing partner for Europe, while strengthening our long-standing industrial partnership,\u201d said Vikrampati Singhania, president, The Automotive Component Manufacturers Association of India, and vice-chairman and MD, JK Fenner (India).<\/p>\n<p>Shailesh Chandra, president, Siam and managing director and CEO Tata Motors Passenger Vehicles Ltd, said, \u201cThe FTA with EU will play a key role as India marches on towards \u2018Viksit Bharat\u2019. The calibrated approach to balance market access and domestic manufacturing, should give us a win-win between increased global participation on one hand and growth of the domestic auto industry with investments and employment on the other hand. This will also enable increased choice for consumers in both regions.\u201d<\/p>\n<p><strong>Feature Presentation: Rajesh Alva\/<em>Rediff<\/em><\/strong><\/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; to shares of major Indian <span class=\"match\">automobile<\/span> manufacturers such as Mahindra &#8230; and predictable environment for European <span class=\"match\">automakers<\/span> to invest, innovate, and &#8230; ,\u00e2\u0080\u009d said Vikrampati Singhania, president, The <span class=\"match\">Automotive<\/span> Component Manufacturers Association of India &#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-90668","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\/90668","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=90668"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/90668\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=90668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=90668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=90668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}