Archive · 25 Jul 2025
India-UK FTA to Reduce Tariffs on UK Luxury Cars
Imagine India and the UK made a deal to help each other.
This deal makes it cheaper to buy luxury cars from the UK in India.
For regular gas-powered cars, the taxes (tariffs) will go down, but there's a limit on how many can be imported at the lower price.
Electric and hybrid cars under a certain price get no tax.
More expensive electric cars will also get reduced taxes.
This change might make high-end cars easier to buy in India.
The deal also helps truck imports.
The agreement aims to boost trade between the two countries, benefiting both consumers and car companies.
The India-UK CETA will make UK-made luxury cars cheaper in India.
Tariffs on imported ICE cars will initially be reduced to 30-50% with a quota of 20,000 cars.
Tariffs on EVs, hybrids, and hydrogen fuel-based cars priced under £40,000 CIF are eliminated.
ICE truck tariffs will decrease to 37% in the first year, with a quota of 2,500.
The agreement doesn't reduce out-of-quota duties on zero-emission vehicles.
- Who
- Automakers and consumers in India and the UK are impacted.
- What
- The India-UK Comprehensive Economic and Trade Agreement (CETA) is reducing import tariffs on UK-made cars and trucks.
- When
- Tariff reductions begin with the implementation of the CETA.
- Where
- India and the United Kingdom.
- Why
- To reduce import duties, making UK-made cars cheaper in India, and boost trade between the countries.
Consumers/Automakers
Domestic EV/Hybrid Players
Market Access
Consumers/Automakers
Benefit from reduced prices and increased access to vehicles.
Domestic EV/Hybrid Players
Potential competition with domestic EV and hybrid car makers.
- Agreement
- India-UK Comprehensive Economic and Trade Agreement (CETA)
- ICE Car Tariff (Year 1)
- 30-50% (quota of 20,000)
- ICE Car Tariff (Year 15)
- 10% (quota of 15,000)
- EV Tariff (Under £40,000)
- 0%
- EV Tariff (Over £80,000)
- 40% (quota of 4,000)
- ICE Truck Tariff (Year 1)
- 37% (quota of 2,500)