India to cut car tariffs to 40% in EU trade deal

India plans to slash tariffs on cars imported from the European Union to 40% from as high as 110%, sources said, in the biggest opening yet of the country’s vast market as the two sides close in ona free trade pact that could come as early as Tuesday.

- Reuters

India is the world's third-largest car market by sales after the US and China.

(AFP)

Prime Minister Narendra Modis government has agreed to immediately reduce the tax on a limited number of cars from the 27-nation bloc with an import price of more than €15,000 ($17,739), two sources briefed on the talks told Reuters.

This will be further lowered to 10% over time, they added, easing access to the Indian market for European automakers such as Volkswagen, Mercedes-Benz and BMW.

The sources declined to be identified as the talks are confidential and could be subject to last-minute changes. India’s commerce ministry and the European Commission declined to comment.