India UK FTA Now In Effect: British Luxury Cars To Get Cheaper In India
The India UK FTA has now come into effect, marking a major milestone in trade relations between the two countries. While the agreement is expected to benefit sectors such as textiles, footwear, garments and processed foods, it is also set to transform India's premium automobile market.
One of the biggest highlights of the India UK Free Trade Agreement is the phased reduction in car import duty on British-made vehicles. As a result, several iconic luxury car brands are expected to become more affordable for Indian buyers over the coming years. Some high-end models could witness price reductions of up to Rs 3 crore, depending on the brand and variant.
Earlier this year, Jaguar Land Rover announced price reductions of up to Rs 75 lakh on select UK-built models, including the Range Rover SV and Range Rover Sport SV.
Meanwhile, official announcements from Rolls-Royce, Bentley, Aston Martin and McLaren regarding revised prices are still awaited. However, industry expectations suggest that some McLaren supercars could become more than Rs 3 crore cheaper as the phased duty reductions are implemented.
Also Read: New Lexus ES 300h Launched In India At Rs 66.10 Lakh: Price, Features And Specifications
Key highlights include:
One of the biggest highlights of the India UK Free Trade Agreement is the phased reduction in car import duty on British-made vehicles. As a result, several iconic luxury car brands are expected to become more affordable for Indian buyers over the coming years. Some high-end models could witness price reductions of up to Rs 3 crore, depending on the brand and variant.
Which Luxury Car Brands Will Benefit?
Several renowned British manufacturers are expected to gain from the new trade agreement, including Jaguar Land Rover, Rolls-Royce, Bentley, Aston Martin and McLaren.Earlier this year, Jaguar Land Rover announced price reductions of up to Rs 75 lakh on select UK-built models, including the Range Rover SV and Range Rover Sport SV.
Meanwhile, official announcements from Rolls-Royce, Bentley, Aston Martin and McLaren regarding revised prices are still awaited. However, industry expectations suggest that some McLaren supercars could become more than Rs 3 crore cheaper as the phased duty reductions are implemented.
Also Read: New Lexus ES 300h Launched In India At Rs 66.10 Lakh: Price, Features And Specifications
How Will The Import Duty Change?
Under the India UK CETA , import duties on British-made vehicles will be reduced in phases through a quota-based system based on engine size and fuel type.Key highlights include:
- Import duty on petrol cars with engines above 3,000cc and diesel vehicles above 2,500cc has been reduced from 110 per cent to 80 per cent during the first year.
- These categories are subject to an annual quota of 10,000 imported vehicles.
- Petrol vehicles with engines between 1,500cc and 3,000cc, along with diesel vehicles up to 2,500cc, now attract a 50 per cent import duty, down from 66 per cent, with an annual quota of 5,000 units.
- Petrol vehicles with engines up to 1,500cc are also covered under the 50 per cent tariff, limited to 5,000 units annually.
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