Overview
- The draft tariff schedules published Sept. 12–13 set a 100,000-unit concessional CBU quota for EU-origin ICE and non-plug-in hybrid cars in year one rising to 160,000 by year ten.
- Preferential duties inside India’s quota are tiered by price band, for example cars priced €15,000–€35,000 face about 35% in year one falling to about 10% by year ten.
- Battery-electric and plug-in hybrid CBUs get a separate TRQ that starts in year five at 20,000 units and ramps to 90,000 by year 14, with its own staged tariff cuts.
- The EU’s draft offers larger reciprocal access for Indian-made cars — 250,000 units in year one rising to 400,000 by year ten with many tariff lines falling to zero by year five — while imports outside TRQs will keep high MFN duties initially.
- Negotiations concluded in January 2026 but the agreement is unsigned and must clear domestic approvals before taking effect, a design meant to protect local industry now while allowing phased consumer choice and new import options later.