India may soon throw open the garage door to cheaper European cars by slashing its notoriously high import tariffs, potentially transforming the country’s auto market and turning up the heat on local manufacturers. It’s not just Europe in the mix either; the US has been pressing for the same, hoping to wedge its brands into one of the world’s fastest-growing auto markets.
Currently, India shields its domestic auto industry with import duties that can hit a staggering 110%. But according to unnamed sources speaking to Reuters, officials are considering dramatic cuts for European-made vehicles, potentially reducing tariffs to as low as 10%. If that happens, it would be a major boost for German heavyweights like BMW, Mercedes-Benz, and the Volkswagen Group.
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