# India-EU FTA quota for EU cars: 1 lakh in year one

2026-09-14T07:48:12+00:00 | Governance | Indian Opinion Desk

Corroboration: 5 independent outlets

The India-EU Free Trade Agreement will allow European carmakers to export up to 1 lakh passenger vehicles to India at a concessional duty of 30 per cent in the first year, with the quota rising gradually to 1.6 lakh units by year 10, according to the draft text released by the European Commission. The duty on luxury cars priced above €35,000 will fall from 30 per cent to 10 per cent over five years. The EU will also permit 2.5 lakh Indian-built cars annually at 8 per cent duty, increasing to 4 lakh vehicles, while duties on Indian steel receive an additional preferential quota of 6.95 lakh tons on top of existing WTO limits. The agreement, announced on January 27 and now moving towards ratification, covers 96.6 per cent of EU goods exports to India and 99 per cent of Indian exports. However, Indian steel exports remain subject to the EU's Carbon Border Adjustment Mechanism, which can add costs of up to 35 per cent of value. The FTA is expected to enter into force by end of 2026.

## Indian Opinion Analysis

NDTV Profit and the two Economic Times outlets reported the quota figures and ratification process neutrally, while The Hindu Business Line ran separate stories that cast the deal as a strategic win for Indian auto groups Tata, Bajaj and JSW, and flagged the EU's carbon levy on steel as a persistent cost. The Hindu also noted that the steel quota does not exempt India from the carbon border tax. The pro-business framing emphasised flexibility for Indian manufacturers, the critical framing stressed that carbon costs will erode margin gains. The combined reading shows India gets preferential access, but the EU's carbon mechanism will remain a real trade cost that industry has to absorb.

## Coverage

- ndtvprofit.com (neutral report) <https://www.ndtvprofit.com/economy/eu-to-allow-2-5-lakh-indian-cars-at-concessional-duty-under-fta-quota-to-reach-4-lakh-in-10-years-12042009#publisher=newsstand>
  Led with EU car quota details and ratification step, neutral wire reporting tone.
- government.economictimes.indiatimes.com (pro government) <https://government.economictimes.indiatimes.com/news/governance/euindia-fta-advances-towards-ratification-set-to-reshape-180-billion-trade-relationship/134070491>
  Emphasised scale and strategic significance for India, largely pro-FTA framing.
- auto.economictimes.indiatimes.com (neutral report) <https://auto.economictimes.indiatimes.com/news/passenger-vehicle/india-eu-fta-to-allow-1-lakh-eu-cars-at-concessional-duties-in-first-year-report/134115109>
  Focused on ICE/hybrid quota figures, neutral trade reporting.
- thehindubusinessline.com (right leaning) <https://www.thehindubusinessline.com/economy/eu-to-allow-25-lakh-indian-cars-at-concessional-duty-under-fta-quota-to-reach-4-lakh-in-10-years/article71465344.ece>
  Framed FTA as strategic advantage for Indian auto firms Tata, Bajaj, JSW, pro-business slant.
- thehindubusinessline.com (right leaning) <https://www.thehindubusinessline.com/companies/india-eu-fta-gives-tata-bajaj-and-jsw-a-foot-on-both-sides-of-the-tariff-wall/article71462888.ece>
  Framed FTA as strategic advantage for Indian auto firms Tata, Bajaj, JSW, pro-business slant.
- thehindu.com (government critical) <https://www.thehindu.com/news/national/india-gains-wider-eu-steel-access-but-carbon-levy-remains/article71465776.ece>
  Stressed wider steel quota but highlighted carbon levy cost, critical on climate trade barrier.

Tags: Bajaj Auto, European Commission, European Union, India-EU FTA, Tata Motors
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