After the US rates imposed by Trump, Europe moves to look for new commercial outlets for the manufacturers of the Old Continent (with the same USA in the background)
THE’European Union tends to hand toIndiain the hope that the latter reduces the duties on cars imports from the old continent. According to what reported by Reutersthe government of Narendra Modi would be willing to open towards European requests, gradually reducing duties, now higher than 100%, up to 10%. A will not shared by the local builders, not so inclined to excessively open the “doors” of their country to foreign competitors. The Indian automotive market is worth four million units sold: greater access would allow EU manufacturers to ease at least in part the negative effects of the duties imposed by Donald Trump. The same American president, among other things, in recent weeks had submitted similar requests to Nuova Delhi. The race to open A very interesting and protected market It therefore seems to be started.
A very protected market
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The Indian automotive market is extremely protected from a commercial point of view. This is thanks to the presence, and also to the pressures, of important internal producers such as Tata Motors And Mahindra & Mahindrawhich would not like an exaggerated opening of the internal market to foreign competitors. At this moment the duties on imports of cars from abroad are higher than 100%. According to the Reutersthe Indian car industry would have proposed a 70% reduction in rates on a limited number of petrol cars, and then cut them progressively up to 30%. The discourse concerning i electric modelsso local manufacturers ask for more guarantees. In particular, the houses would like to prevent there are reductions in rates until 2029, and then open up to a duties up to 30% on a limited number of imports.
The next steps
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It is not clear how advanced the interviews between the EU and India. However, the duties imposed by the United States could have given a further push to this negotiation, given the imminent need to react to American commercial moves. A privileged relationship with India could allow the old continent to study new strategic and commercial solutions. Without forgetting, however, that the US remain in the background, probably with a telephone line reserved for New Delhi.
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