New Delhi (Diya TV) – The European Union calls on India to reduce cars import prices as part of a trade agreement for several decades that has blocked, repeating an appeal prior to the Trump administration, said Reuters.
According to sources close to the negotiations, Reuters said that the Indian government could consider reducing automotive import duties to 10%, a sharp reduction of more than 100% currently in force. Although the proposal has not yet been officially announced, commercial analysts indicate that such a decision would be a sign of increased dynamism in the negotiations between the European Union and India, which has been taking place for a few years.
The highly protected automotive industry from India, which produces nearly 4 million vehicles per year, is faced with increasing pressure as global trade flows are transformed. National players such as Mahindra and Mahindra make lobbying to keep prices of at least 30%, indicating that a high price is a necessity to protect domestic players against a flow of imports. They also want prices on electric vehicles to remain unchanged, at least for four more years.
Although opposed to industry, the Indian Ministry of Commerce of India secretly examined the last EU proposal in a meeting between the best automotive manufacturers in the country and the Ministry of Heavy Industries, said Reuters. European car manufacturers such as Volkswagen, Mercedes-Benz and BMW would draw a lot from any price reduction. Tesla would also gain land on the Indian market, with its electric cars in Berlin to be deployed in the country later this year.
Although it is not sure that India has officially made the new price offer, analysts believe that the two nations can be accommodating in the face of the concerns of a slowdown in global trade and the residual impacts of Trump’s trade tensions. India-European Union, free trade talks should be concluded by 2025, and the resulting agreement will redefine the future of automotive imports on the global giant emerging market.
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