Auto Desk, New Delhi. Free trade agreement has been signed between India and Europe. After which import duty will be reduced in many areas. The automobile sector will also benefit from this agreement between EU and India and now it will be easy to buy cars of many European automakers in India. Buying cars from which major manufacturers can save you more? What is included in the agreement? We are telling you in this news.
FTA signed between EU and India
A free trade agreement has been signed between the European Union and India on 27 January. This agreement has been signed in Delhi and during this, many prominent leaders from both sides were involved.
Automobile sector will benefit
After the FTA between EU and India, it will now become cheaper to buy cars from major European automakers in the country. After the agreement between the two, this tax on cars of European automakers will be reduced to about 10 percent.
Which cars will cost less?
According to the agreement, only cars priced at Rs 25 lakh and above will benefit from this agreement. Only 2.5 lakh units will be exempted from tariff every year. Along with this, these cars will be only with ICE technology. Electric cars have not been given such exemption.
Duty on parts will also be abolished
According to the information, the duty imposed on car parts will also be abolished for the next five to 10 years. Due to which local assembly can be quite economical.
how much is tax
In the current system, if foreign cars costing less than 40 thousand dollars are brought to India, 70 percent of the total price is collected as tax. Foreign cars costing more than this are charged 110 percent tax in India. Which will now be reduced.
Cars are sold in India by many European automakers. Manufacturers like Mercedes Benz, BMW, Audi, Porsche, Volvo, Volkswagen, Skoda, Lamborghini, Ferrari will benefit the most.
Mercedes Benz India welcomed
Santosh Iyer, MD & CEO, Mercedes-Benz India, said that Mercedes-Benz India welcomes the-EU FTA as it will have a positive impact on customer sentiment for the luxury segment, thereby boosting overall economic growth. Gradually reducing tariffs on vehicles and completely liberalizing automotive parts are strategically important decisions in the FTA for the automotive industry. The FTA opens up new avenues for customers, including better vehicle allocation, better availability of top-end global models for the Indian market, faster access to the latest technology and creating a stronger luxury car ecosystem. However, Mercedes-Benz will continue to deliver value to customers with local production of world-class models from our manufacturing plants.
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