India, Jan. 26 -- Indo-EU trade deal may cut import duty on European cars and bikes by 40 per cent, opening the door for more BMW, Ducati, Mercedes and Volkswagen models in India.

India may soon see more Euro-built cars on its roads as the Indo-EU trade deal moves closer. A major cut in import duty could change what European brands bring to India. That single change could make a big difference to what reaches Indian roads. Several global models stay away only because pricing does not work under the current tax structure. If the new duty system comes into effect, buyers may finally see more Europe-made cars rather than region-modified versions built for cost control.

The revised import duty is expected to apply to fully built units comin...