Quick Takeaways
- ACEA EU-India free trade agreement seen as a key boost for European automobile exports.
- The deal targets improved access to India’s fast-growing passenger car market while balancing trade safeguards.
On January 27, 2026, the European Automobile Manufacturers’ Association (ACEA) welcomed the conclusion of negotiations for a free trade agreement between the European Union and India, calling it a significant development for the automotive sector. The ACEA EU-India free trade agreement is expected to improve access for European manufacturers to one of the world’s most promising car markets.
ACEA EU-India Free Trade Agreement and Market Access
ACEA highlighted that the agreement could substantially support European automobile exports by opening opportunities in an Indian passenger car market of around 4 million units annually. Until now, this market has been shielded by import duties that can reach as high as 110%, making entry costly and commercially challenging for foreign automakers.
Trade Safeguards and Remaining Barriers
While welcoming the progress, ACEA also noted that the agreement includes several limitations.
Next Steps for Approval and Implementation
A detailed evaluation of the final terms will begin once the official texts are released in the coming weeks. ACEA members have expressed support for the agreement and intend to seek timely approval from EU member states and the European Parliament, with the aim of enabling implementation at the earliest possible stage and providing clarity for long-term automotive trade planning.
ACEA EU-India Free Trade Agreement and Market Access
ACEA highlighted that the agreement could substantially support European automobile exports by opening opportunities in an Indian passenger car market of around 4 million units annually. Until now, this market has been shielded by import duties that can reach as high as 110%, making entry costly and commercially challenging for foreign automakers.
Trade Safeguards and Remaining Barriers
While welcoming the progress, ACEA also noted that the agreement includes several limitations.
- These include quota caps and residual tariffs that may restrict the overall commercial upside for some manufacturers.
Next Steps for Approval and Implementation
A detailed evaluation of the final terms will begin once the official texts are released in the coming weeks. ACEA members have expressed support for the agreement and intend to seek timely approval from EU member states and the European Parliament, with the aim of enabling implementation at the earliest possible stage and providing clarity for long-term automotive trade planning.
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