Group 1 - India is considering reducing car import duties under a proposed trade deal with the European Union, with tariffs on select European vehicles potentially dropping to 40% from current rates as high as 110% [1][2] - A specific group of cars priced above €15,000 (approximately Rs1.63 million) would see immediate tariff relief, with duties eventually decreasing to 10% [1][3] - The proposed changes aim to enhance bilateral trade and support Indian exporters facing high US tariffs, particularly in textiles and jewellery [2] Group 2 - The Indian car market is the third-largest globally, with current import duties ranging from 70% to 110%, and European brands hold less than 4% of the 4.4 million-unit passenger car market [2][4] - Annual car sales in India are projected to reach six million by 2030, prompting companies like Renault and Volkswagen Group to prepare new investment plans [4] - The government may allow around 200,000 petrol and diesel cars annually to enter at the reduced 40% tariff rate, while battery electric vehicles (BEVs) will not benefit from lower tariffs for five years [3]