India–EU FTA: Why European EV Prices Aren’t Coming Down Anytime Soon
India–EU FTA In early 2026, India and the European Union (EU) finalized a landmark Free Trade Agreement (FTA) after nearly two decades of negotiations — a deal many are calling the “mother of all trade deals.” It promises to reduce tariffs on most goods traded between the two economies, significantly reshape auto trade, and boost economic cooperation. However, when it comes to European electric vehicle (EV) prices in India , the good news doesn’t translate into immediate relief for consumers. Even with the FTA in place, European EVs are unlikely to become significantly cheaper in the near term — and here’s why. 🛠 What the India–EU FTA Does for Autos Before diving into EV pricing, it’s important to understand the broad framework of the deal: The FTA will reduce or eliminate tariffs on around 90% of traded goods between India and the EU over time, covering goods, services, and many industrial products. For cars, import duties ...