EU Trade Deal: European Cars May Get Cheaper in India After Tax Cuts

A 40% tax cut is coming from the EU trade deal. The important agreement talks held on Republic Day were successful, and the tax on the European Union is being reduced. As a result, the prices of these cars in India will see a huge drop.

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India European Union Deal

India and the European Union have made a significant agreement. The EU, which attended as chief guests for Republic Day, signed a trade deal during important talks with India. This will reduce tariffs on trade between India and the EU.

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Import duty cut on European products

Under this major deal, the tax on importing EU products into India will be cut by a whopping 40%. Currently, a 110% tax was levied on EU goods sold in India. Now, this tax is being reduced, leading to a huge price drop for European cars.

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Tax cut from 110% to 70%

Thanks to the India-EU trade deal, the tax on imported goods has been slashed from 110% to 70%. That's a massive 40% tax reduction. This will cause a huge price drop for German and other European cars.

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Which car prices will drop in India

Many cars from EU countries are available in India. Thanks to the trade deal, prices for Mercedes-Benz, BMW, Audi, Porsche, Volvo, and Volkswagen cars will drop in India. The reduction in import duty is the reason for the price drop.

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Competition for Maruti, Tata cars

The EU trade deal will lower prices for Volkswagen, Skoda, Benz, and other European cars. Entry-level car prices, in particular, will see a significant drop. This will pose a serious challenge to dominant players in India like Maruti Suzuki and Tata Motors.

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German, British, Swedish cars

The India-EU trade deal will make the dream of owning German, British, and Swedish cars a reality for many Indians. These cars will become much cheaper, making luxury cars available at regular prices. High taxes in India had previously made these cars expensive.