India is now a major global supplier of auto components and industrial machinery, serving European carmakers, Tier-1 suppliers and the aftermarket.
Spain is Europe's second-largest vehicle producer, with a deep supplier network, which creates steady demand for competitively priced, quality-certified parts and machinery.
India's auto component exports reached USD 24 billion in FY2026, up 5%. Europe was the fastest-growing region at USD 7.36 billion (+9%). The India–EU trade agreement is expected to deepen India's role in European supply chains.
Indicative estimates by Think Euro International. Actual results depend on capital invested, pricing, buyers and execution.
| EU import duty | Auto parts mostly 3% – 4.5%; most industrial machinery 0% – 4%. India gets no GSP discount on machinery or vehicles in 2026–28. The India–EU FTA will reduce these once in force. |
|---|---|
| Spanish VAT (IVA) | 21% |
| Spanish corporate tax | Spanish SL: 25% standard rate. Reduced 2026 rates: 19% on the first €50,000 of profit and 21% on the rest for companies with turnover under €1M; 23% for turnover under €10M; 15% for the first two profitable years of a newly created company. |
India–EU FTA: negotiations concluded on 27 January 2026. It is not yet in force (expected no earlier than 2027); once in force it removes or cuts EU duties on most Indian goods.
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Figures and rates are for general information (updated September 2026) and can change. Duty rates depend on the exact customs (TARIC) code, and tax depends on your specific situation. Please confirm with us before making investment decisions. This page is not legal or tax advice.
