The European Commission has released tariff schedules for a proposed Free Trade Agreement with India. The deal aims to reduce customs duties on up to 315,000 electric vehicles annually, with quotas phased in over time.
The EU plans to lower tariffs on up to 50,000 Indian-made EVs starting in the fifth year of implementation. Duties will drop to 8 per cent initially and reach zero by the ninth year. The quota will eventually rise to 225,000 vehicles from the fourteenth year.
India will offer preferential rates for up to 20,000 EU-made EVs starting in the fifth year, reducing duties from 110 per cent to 30 per cent. The rate will decrease to 10 per cent by the tenth year, with the quota reaching 90,000 vehicles by the fourteenth year.
The agreement excludes cars with a CIF value below €20,000 for imports into India. Both parties concluded negotiations on 27 January 2026, and the European Commission submitted the proposal to the Council of the EU on 11 September 2026.
The deal requires formal signing, consent from the European Parliament, and ratification by India. Officials aim to sign the agreement by the end of 2026, potentially allowing it to enter into force in 2027.
