India is set to significantly reduce tariffs on high-end imported vehicles from the United Kingdom. Read on for more details
The drop in tariffs comes in the backdrop of the recently concluded India-UK Free Trade Agreement (FTA).
India currently levies duties of over 100 per cent on select imported passenger Vehicles, and is set to 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.
The reduction of over 90 per cent in total levies on made-in-UK vehicles being imported into India will most likely bring down their prices by a huge margin.
As of now, there are multiple brands, including Tata Motors-owned Jaguar Land Rover, Rolls-Royce, and Mini who operate in India but many of their offerings sold in India are manufactured in UK and brought here via the CBU route, making them a costly affair. The FTA agreement could even benefit two-wheeler manufacturers such as Trumph Motorcycles and Norton Motorcycles.
The Indian government cited that the FTA will have a 'positive impact on manufacturing across labour and technology intensive sectors', and will also generate new export opportunities for the country's auto manufacturing business, specifically 'auto parts and engines'.