Maruti Suzuki India shares fell as much as 2.95% on Tuesday (January 27, 2026). Image for representational purposes only.
| Photo Credit: Reuters
Shares of India’s top carmakers dropped as much as 5% on Tuesday (January 27, 2026) after Reuters reported that India is set to slash tariffs on European car imports as part of a trade deal, in what would be the most aggressive opening yet of a protected sector.
Shares of Mahindra and Mahindra fell as much as 5.1% to their lowest since August 2025, leading losses on the Nifty auto index, which was down 2.2%.
Read: India-EU Summit LIVE updates
India plans to cut tariffs on European Union car imports to 40% from as high as 110% as the two sides near a free-trade pact that could be sealed as early as Tuesday (January 27, 2026), sources told Reuters.
The government has agreed to immediately reduce the tax on a limited number of cars with an import price of more than 15,000 euros ($17,739), the sources said.
Lower import taxes would offer a lift to European automakers including Volkswagen, Renault and Stellantis, as well as luxury brands Mercedes-Benz and BMW.
Indian manufacturers have long opposed such cuts, arguing that they would discourage investment in local production by making imported vehicles more competitive.
European carmakers currently hold a less than 4% share of India’s 4.4-million units a year car market, which is dominated by Japan’s Suzuki Motor as well as homegrown brands Mahindra and Tata that together hold two-thirds.
Maruti Suzuki India shares fell as much as 2.95% on Tuesday (January 27, 2026) and Tata Motors Passenger Vehicles was down 2%.
Published – January 27, 2026 12:39 pm IST
Source: https://www.thehindu.com/business/Industry/indian-carmakers-slide-on-report-of-sharp-tariff-cuts-for-european-imports/article70555575.ece
