Indian auto trade group opposes import duties cut ahead of trade negotiations with EU

EU is pushing for sharp import duty cuts on completely built-up units (CBUs)

The Society of Indian Automobile Manufacturers (SIAM) has opposed the lowering of duties on imported cars and engines from Europe prior to the conclusion of the ongoing free trade agreement (FTA) negotiations between India and the European Union, reports Press Trust of India. The EU is pushing for sharp import duty cuts on completely built-up units (CBUs) to India in the FTA, citing higher Indian car exports as the primary reason. The import duty on CBUs is 60%, which the EU wants halved to 30%. Additionally, the EU can export a certain number of cars to India – much more than it currently does – at a highly reduced duty of only 10-15%.