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-   -   After Trump, EU seeks 0% tariffs on car imports to India (https://www.team-bhp.com/forum/indian-car-scene/293010-after-trump-eu-seeks-0-tariffs-car-imports-india.html)

The European Union wants India to eliminate tariffs on car imports as part of a new trade deal, just weeks after US President Donald Trump sought similar tax breaks on American imports.



According to media reports, the government of India is willing to consider a tariff cut on car imports, albeit in a phased manner. It is said that the government is open to reducing the import duty on cars from more than 100% to just 10%.

The proposed tax break is expected to massively benefit European carmakers like Volkswagen, Mercedes-Benz, BMW and Audi. American EV maker Tesla also stands to benefit from the reduction in import duty as it plans to import its EVs into India from its Berlin plant.

Domestic players like Tata Motors and Mahindra have opposed the lowering of import tariffs on EVs. The industry has proposed that the import duty be reduced in phases, initially from over 100% to 70% and then to 30%.

Source: Reuters

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While this FTA Import duty cut on car news is something I've been reading for years now.
For the first time I'm actually confident that it might just happen.





Soo ... do we... thank... him?

Thanks to Trump and his administration for opening the can of worms, now everyone is trying to learn how tariffs work. Honestly, its a fair ask from US or EU. If India is corruption free and ease of doing business is top, given our workforce, we can easily kick any company's bu*t. But reality is much different, if government can solve internal issues, all these foreign companies can set up manufacturing units here and it will solve multiple things.

1. Boost to our economy.
2. No need to worry about tariffs.
3. Healthy competition among all the companies.

But that's a distant dream though.

My hunch is that we will have some kind of relaxation, Zero or Low duties but only on EVS. It's not going to happen on ICE as the GOI understands the repercussion's fully for the whole industry.

I wish this thing never goes through. BMW can manufacture in China but wanna dump in India from Germany. Anyways EU is such a waste of a FTA if it goes through so we don't need a FTA with them

I honestly am looking forward to 0% import tax. This will hopefully bring all the manufacturers and add more models as well. Our local players got more than enough time to be competitive. We don’t need to spend on sub par cars if the local manufacturers can’t keep up with the international players.

It isn't about the local players but local jobs. Cannot incentivize make in Germany as much as make in India.

Revision in legacy policies is a good thing if done with some logical reasoning. If this does indeed happen then in my opinion this will benefit everyone.

In the current state of things car prices are just sky rocketing YoY and luxury brands are getting more and more out of reach for most aspiring car buyers. While a complete reduction in import duties may not happen, as many have already mentioned, a phased reduction would be the best path forward if planned and executed well. Our govt. should not take hasty decisions or implement policies in the similar manner of how the ban on diesel was executed.

Should be kept at 40 percent that is the optimal rate in my opinion. Nothing below it, no way close to 0

Agree that bringing down to 0% might be a stretch but to find the right % is something that would require all involved parties to sit down and discuss unless there is some reasoning behind the 40% that I am missing.

I can understand it might be an issue — but when I’m paying the same amount and can get a much better product, why should I get an inferior product as a consumer!

My point is, the local players got a very long time to build themselves up and now we should be able to go with this. Hopefully the local players better products or undercut if they provide slightly inferior quality. Let the consumers decide!

Don’t get me wrong here and I am not an antagonist to nationalism here but it’s high time that our domestic players like Tata and Mahindra be left open. Enough of govt. protecting them for decades now. They had enough time to catch-up and be at par with the world wide OEMs. Look at BYD - they are a serious threat to US/Germans. Look at Vinfast - a small country like Vietnam can do it then why can’t Indian OEMs. Decades have gone by when these OEMs both Indian as well as overseas subsidiaries here have handed decade old tech to Indian customers. They had chance to up their game but they resorted to making money. It’s high time they be tested against the worlds now.

Any nationalism cannot be more than the citizens benefit. These guys have to learn and make things as per world order now.

I know my opinion is quite radical, but this radicalisation is gonna support both consumers and OEMs in longer run.

Able BHPians do opine please!

Thanks,

India has another King up it's sleeve. Indirect tariffs. With constant pressure from WTO for insane import duty rates, the rates have been slowly reduced since last 10 years. However allied acts have started kicking in ever since. Legal Metrology, Extended Producer Responsibility, Plastic Waste, E-Waste, Steel Import Monitoring System, Paper Import Monitoring system, Non Ferrous Import Monitoring System, Pesticide Act, Drug Controller, FSSAI, Animal Quarantine, Plant Quarantine and now the ever strengthening BIS ( Bureau of Indian Standards). The BIS compliance and requirements for Manufacturer to register are financially and Practically impossible for small time units. A classic example of BIS being Kindle devices being driven out of Amazon India. All in all, Duty Rates aren't the only deterrent while importing. A lot of indirect tariffs are also to be considered.

See here is the thing, it is not about you the consumer and also the responsibility of you to think as a citizen of country. Not asking you to buy indian brands but there needs to a penalty to buy Cars from abroad in India cause you are basically causing foreign outflow.

Anyways the cars offered by TAMO and Mahindra both are in no way inferior.

Again, I don't mind anyone buying Foreing OEM cars but made in india with maximum local addition

You have chosen a terrible example because both Vietnam and China have extremely high restrictions on how a Foreign OEM can operate and sell in their country. Vietnam has tariffs as high as 40 percent. It isn't a free run to sell there either.

See in world you are either consumer or producer, with population as high as ours we should look to be producers

I'm afraid but government only understands repercussions on treasury. The babu will not hesitate one bit in sending a notice to a local player asking why are your sales down. Are you suppressing sales?