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flag India-EU trade deal slashes EV tariffs, boosts luxury EV sales, and mandates local production.

flag A proposed India-EU free trade agreement set for announcement on January 27, 2026, is expected to slash import duties on European luxury electric vehicles from 100% to 10–15%, potentially boosting sales in India’s premium EV market. flag The deal includes phased localisation rules requiring 25% domestic content by year three and 50% by year five, protecting India’s manufacturing goals. flag While budget EVs produced locally will remain unaffected, European brands like BMW, Mercedes-Benz, and Porsche may expand production in India, using the country as an export hub. flag The agreement also introduces advanced standards on digital value addition, battery passports, and software-defined manufacturing, which could drive 15–25% growth in collaboration and strengthen supply chain resilience.

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