Archive · 24 Jul 2025
UK-India Trade Deal: Luxury Cars Set to Roll Cheaper into India
India and the UK are making it easier to buy fancy cars.
They've agreed to lower taxes on luxury cars, like those from brands like Rolls-Royce, coming from the UK.
This is because of a new trade deal.
The deal focuses on expensive cars, protecting cheaper cars made in India.
This helps Indian companies grow and make better cars.
The deal also helps companies that make car parts and supports new technologies like electric cars.
It's a plan to boost trade and make sure everyone benefits, especially in the long run.
India-UK trade agreement softens import duties on luxury cars from the UK.
Custom duties on some luxury vehicles may drop by over 70%.
The agreement targets high-end ICE vehicles and EVs while protecting India's domestic auto industry.
Duty reduction to 10% is over five years, with a 50% reduction over ten years for out-of-quota vehicles.
The agreement is expected to benefit the auto component sector, particularly in electric mobility and green technologies.
- Who
- The governments of India and the United Kingdom, along with companies like Jaguar Land Rover and the Automotive Component Manufacturers Association of India.
- What
- A free trade agreement between India and the UK that lowers import duties on luxury vehicles.
- When
- The implementation of the agreement is expected to start within the year.
- Where
- India and the United Kingdom.
- Why
- To facilitate trade, reduce tariffs, and promote growth in the automotive sector, especially in electric mobility and high-end vehicles.
Indian Government
United Kingdom
Protectionism vs. Open Markets
Indian Government
Focuses on strategic and protectionist posture that allows limited imports while encouraging India’s domestic manufacturers to scale up globally.
United Kingdom
India’s automotive industry might be limited by the trade deal.
- Agreement
- India-UK Comprehensive Economic and Trade Agreement (CETA)
- Impact
- Reduced custom duties on luxury vehicle imports
- Duty Reduction (in-quota)
- 10% over five years
- Duty Reduction (out-of-quota)
- 50% over 10 years
- Vehicles targeted
- High-end ICE and Electric vehicles
- Market access (EV)
- Given mostly in high price segment of vehicles priced above £80,000