High-End British Cars, SUVs To Get Cheaper With Conclusion Of India-UK Free Trade Agreement


- Free Trade Agreement will result in reduction of tariffs on high-end cars made in the UK.
- Luxury cars from the UK will see tariffs reduced from over 100 per cent to just 10 per cent.
- FTA will generate new export opportunities for India’s auto manufacturing and components industry, as per the Indian government.
In news that will spread cheer among buyers of premium and luxury cars (as well as their makers), India will soon greatly reduce tariffs on high-end cars imported from the United Kingdom, as part of the India-UK Free Trade Agreement (FTA) that has just been concluded. India, which currently levies duties of over 100 per cent on select imported passenger vehicles, will slash tariffs on made-in-UK cars and SUVs “from over 100 per cent” to just “10 per cent, under a quota”, according to the United Kingdom’s Department for Business & Trade.
Also Read: Tesla Cautious About India Entry Plans: 100% Tariff "Creates Anxiety" Among Buyers
While specifics of the quota have not been shared, it is understood that the reduced tariff would apply to a limited volume of imported cars and SUVs. Even so, this will spell a reduction of over 90 per cent in total levies on made-in-UK vehicles being imported into India, which will almost certainly lead to a substantial reduction in their prices.

Luxury carmakers based in the UK, including Aston Martin, mainly import most of their offerings into India.
At present, a number of luxury marques, including Tata Motors-owned Jaguar Land Rover (now JLR), Aston Martin, Bentley, Rolls-Royce and Mini operate in India, with several models built in the UK brought to our shores via the completely-built-up (CBU) route, which usually leaves them wearing an astronomical price tag.
Among these manufacturers, JLR is already assembling the ever-popular Range Rover in India, but continues to import select vehicles in its portfolio alongside special-edition models. The FTA could also benefit two-wheeler manufacturers such as Triumph Motorcycles and Norton Motorcycles.

The FTA will help expedite Norton's India entry, as per TVS Motor Company.
In a press note, the Indian government specified the FTA will have a ‘positive impact on manufacturing across labour and technology intensive sectors’ and is set to generate new export opportunities for the country’s auto manufacturing business, specifically ‘auto parts and engines’.
Also Read: Exclusive: Norton Motorcycles Working On Two New Platforms For India
Commenting on the conclusion of the FTA, Sudarshan Venu, Managing Director at TVS Motor Company, said this move will help the company expedite the introduction of Norton Motorcycles in India later this year.
“We applaud our PM’s vision to enhance India’s trade links globally. It creates large opportunities for Indian companies like ours to expand further and access new markets. We really appreciate the effort taken by the Government to make this historic India-UK Free Trade Agreement. Our British brand Norton will launch later this year, and this agreement will help us scale faster and leverage common supply chains. We are excited as we further progress towards Viksit Bharat.”
UK auto industry body Society of Motor Manufacturers and Traders expects the agreement to have "compromises", but also hopes for “agreement on future bilateral trade of electrified vehicles”.
Mike Hawes, Chief Executive at SMMT, said, "Today’s signature of a UK-India FTA, the result of more than three years of complex negotiations, represents a historic first step in strengthening our already close automotive trade and investment ties and opening up mutual opportunities. While the agreement will likely feature compromises, and might not offer unfettered market access to all UK automotive goods, we appreciate the considerable effort British negotiators have devoted to secure the first partial liberalisation of the Indian automotive market. We trust the deal will be fair and deliver on essential UK industry priorities, with major tariff reductions on most UK automotive exports, favourable origin requirements and a workable agreement on future bilateral trade of electrified vehicles.”
A spokesperson for JLR refused comment on the India-UK FTA. Tata Motors and Mahindra, too, have chosen to not share a comment on this development at present. carandbike has also reached out to several other vehicle manufacturers for comment, and this story will be updated as and when we receive them.
This is a developing story. Please stay tuned for details.
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