India-EU FTA: A Balanced Approach to Automotive Competition

M&M Group CEO Anish Shah clarified the implications of the India-EU Free Trade Agreement (FTA) on Wednesday, stating that domestic SUV volumes won't be affected unless the economy fully opens. The agreement, which provides 95% of Indian imports duty-free access to the EU, promises a balancing act for India's automotive sector.

During a media briefing, Shah expressed optimism about the current momentum in auto and e-commerce sectors, despite forex impacts on hospitality. He dismissed concerns over European models undercutting Indian products, pointing out logistical costs and existing inventories that deter competition.

The deal, expected to formalize in 2026, could shift production strategies if capacity from closed European plants redirects to India. However, Shah praised the government's strategic FTA negotiations, which encourage foreign manufacturers to maintain Indian operations, creating an ecosystem beneficial for both parties.