M&M Group CEO Anish Shah on Wednesday clarified the implications of the India-EU Free Trade Agreement (FTA), saying domestic SUV volumes will not be affected unless the economy opens up completely. The deal, which grants 95% of Indian imports duty-free access to the EU, promises a balancing act for India’s auto sector.
During a press briefing, Shah expressed optimism about the current dynamics of the automobile and e-commerce sectors, despite the impacts of foreign exchange on the hotel industry. He dismissed concerns about European models undercutting Indian products, pointing to logistics costs and existing inventories that deter competition.
The deal, expected to be formalized in 2026, could change production strategies if capacity from closed European factories is redirected to India. However, Shah welcomed the government’s strategic FTA negotiations, which encourage foreign manufacturers to maintain operations in India, thereby creating a beneficial ecosystem for both parties.
(With input from agencies.)
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