EU-India Trade Deal Promises Drive for European Carmakers

European carmakers are set to benefit from a new EU-India trade deal that reduces tariffs on car imports. While this presents an opportunity in India's vast market dominated by local and Japanese brands, premium European manufacturers face challenges in competing against economical and reliable 'kei' cars.

European automakers are poised for growth as an EU-India trade agreement significantly reduces tariffs on car imports to 10% from a previous high of 110%.

Although this development offers a new avenue for brands like Volkswagen and Renault, market dominance remains with local companies and compact 'kei' cars from Japanese makers such as Suzuki and Hyundai.

The Indian automotive market, the third-largest globally, holds vast potential, especially with anticipated growth to six million vehicles annually by 2030.

(With inputs from agencies.)