How Modi Says India–EU Trade Deal Could Lower Car Prices

Prime Minister Narendra Modi’s explanation of the India–EU trade deal has grabbed attention after he said it could directly bring down car prices in India.

Speaking about the negotiations, Modi pointed to reduced import duties and smoother trade rules between India and the European Union. According to him, once barriers are lowered, car manufacturers will be able to source parts more cheaply and bring advanced vehicles into the Indian market at lower costs.

This comment quickly travelled across business news pages and creator explainers, especially because car prices in India have risen sharply over the last few years. From entry-level hatchbacks to EVs, affordability has become a major concern for young buyers.

In simple terms: cheaper imports and parts could mean lower final prices for consumers.

Why this matters: For Gen-Z and young working Indians, owning a car is already slipping out of reach due to rising prices, high taxes, and fuel costs. If the trade deal actually reduces prices, it could reshape buying decisions — especially for first-time buyers and those considering EVs.

However, critics are urging caution. They argue that while big manufacturers may benefit quickly, local component makers and workers could face pressure if cheaper imports flood the market. The real impact, they say, will depend on how protections and transition measures are designed.

The India–EU trade deal is still under negotiation, and timelines remain unclear. But Modi’s comments have pushed one question to the centre of the debate: will global trade finally make everyday products cheaper for ordinary Indians — or mainly help large corporations first?