India official says it is to immediately slash tariffs on 100k European cars a year to 30-35% from as high as 110% and tariff on cars priced EUR 15k-35k to be cut to 35% and cars priced over EUR 35k to be taxed at 30%

• Tariff will be cut to 10% over 5 years and annual car import quota to be raised to 160k over 10 years.
• India to levy same import tax cut on EV models priced over EUR 20k after 5 years.

India's decision to slash tariffs on European cars signals a significant easing of trade barriers, which is likely to enhance bilateral relations and could spur increased competition in the automotive sector. This move may also influence foreign investments in India, particularly from European manufacturers, potentially impacting currency dynamics as the USD and EUR interact with the INR. Overall, this is a notable shift that could pave the way for more global trade engagement, particularly in the automotive and EV markets.