Finance
Closer India-EU ties will reinforce Renault's decision to invest in both regions
Published by Global Banking and Finance Review
Posted on January 27, 2026
2 min readLast updated: January 27, 2026
Quick Summary
The India-EU trade deal reduces tariffs, boosting Renault's investment in both regions and enhancing market opportunities.
Enhanced India-EU Relations Boost Renault's Investment Strategy
Impact of India-EU Trade Relations on Renault
By Aditi Shah and Gilles Guillaume
Tariff Reductions and Their Implications
CHENNAI/PARIS, Jan 27 (Reuters) - Closer trade ties between India and the European Union will reinforce French carmaker Renault's decision to invest in both regions, chief growth officer Fabrice Cambolive said on Tuesday, hours before the two sides finalised a landmark free trade deal.
Renault's Market Strategy in India
Under the deal, tariffs on cars imported from the EU will be slashed immediately to about 30-35% from as high as 110% and then reduced to 10% over time. While the immediate effect is still being assessed, it is expected to benefit European carmakers like Renault, Volkswagen, Mercedes-Benz and BMW over time.
Future of the Automotive Industry
"Strategically, it shows the direction and this capacity to work closer between Europe and India is for us, a good news, because we are a company which has bet on these two continents on a very high level," Cambolive told Reuters in the southern Indian city of Chennai.
"It will reinforce our willingness to invest on both continents because we are kind of Indian and European company," he added.
Apart from cars, tariffs on imported car parts from Europe will be abolished after five to 10 years, making it easier for companies to streamline supply chains as well.
Cambolive said while it is important to be able to export from Europe to India, it is also important to see what role India can play in the development of the European automotive industry in terms of parts and cars.
"India was perhaps not in the top one priority (for Renault) in the last four years, but will become because of this getting closer strategy, the strength of our people there, the potential of market growth, and of course, the FTA," he added.
On Monday, Renault relaunched its most popular nameplate in India, the Duster SUV, leaning on the world's third-largest car market for growth outside Europe.
(Reporting by Aditi Shah in Chennai and Gilles Guillaume in Paris; Editing by Emelia Sithole-Matarise)
Key Takeaways
- •India-EU trade deal reduces car import tariffs.
- •Renault to increase investments in India and Europe.
- •Tariff cuts benefit European carmakers like Renault.
- •India's role in European automotive industry grows.
- •Renault relaunches Duster SUV in India.
Frequently Asked Questions about Closer India-EU ties will reinforce Renault's decision to invest in both regions
1What is market strategy?
Market strategy refers to a company's plan to reach potential customers and achieve competitive advantage in the marketplace.
2What is the automotive industry?
The automotive industry encompasses the design, development, manufacturing, marketing, and selling of motor vehicles, including cars, trucks, and motorcycles.
3What is investment strategy?
An investment strategy is a plan designed to help an investor achieve their financial goals through the allocation of resources in various assets.