Free trade pact with EU likely to include auto

CHENNAI: India’s proposed free trade agreement (FTA) with the European Union could include tariff reduction on import of vehicles as well as automotive components. If it does, it will be a first since India’s FTAs with other auto hubs like Japan, Korea and Thailand have so far left out completely-built vehicles from the areas covered by the FTA. The possibility of fully-built vehicles being included in the FTA with the EU – home to auto majors like Volkswagen, BMW, Mercedes Benz, Fiat and Renault – is causing considerable heartburn in the auto industry.