EU-India Trade Deal Opens Strategic Opportunities for European Carmakers

Signed on 27 January 2026, the free trade agreement between the EU and India is seen as a major opportunity for European carmakers. After nearly 20 years of negotiation, the deal will remove or reduce tariffs on roughly 97% of traded goods, potentially doubling EU exports to India by 2032. Import duties on European cars will fall sharply, from up to 110% to 35%, and eventually to around 10% within an annual quota. Automotive parts and components will also see progressive liberalization. For groups like Volkswagen and Renault, the agreement strengthens long-term strategies in India, now the world’s third-largest car market.