India and the United Kingdom have officially signed a landmark Free Trade Agreement (FTA), which includes a significant reduction in import duties on high-end cars made in the UK.
A Landmark Trade Deal Takes Effect
The highly anticipated Free Trade Agreement between India and the United Kingdom has now been formally signed. This significant event took place approximately six weeks after the trade deal was initially announced.
The signing ceremony was held in the presence of India’s Prime Minister Narendra Modi and his British counterpart, Keir Starmer. India’s Commerce Minister, Piyush Goyal, was also present for the formalisation of this crucial agreement.
Big Savings for Luxury Car Buyers
A key highlight of this FTA for consumers is the drastic reduction in tariffs on “high-end cars” imported into India from the UK. Previously, these luxury vehicles attracted an import duty of around 110 percent.
Under the new agreement, this tariff will be slashed to just 10 percent. While this significant cut has been confirmed and signed off, details regarding a specific quota for the number of UK-made models eligible for this reduced tariff are still to be finalised.
Despite the pending quota, this move is expected to lead to much lower prices for premium and luxury cars manufactured in the UK, making them more accessible to Indian buyers.
Which Carmakers Stand to Benefit?
Several prominent automotive brands with manufacturing facilities in the UK and a presence in the Indian market are set to gain from these tariff reductions. These include luxury stalwarts like Aston Martin, Bentley, JLR (Jaguar Land Rover), and Rolls-Royce.
Mini India is another beneficiary. The company, which imports its popular Cooper model from the UK, had already proactively launched a price protection programme. This initiative was designed to pass on the benefits of any future price reductions directly to its customers, anticipating the FTA’s impact on the Mini 3-Door’s pricing.
- India and the UK have signed their Free Trade Agreement (FTA).
- Import duties on UK-made “high-end cars” will drop from around 110% to just 10%.
- This tariff cut is expected to make luxury cars like Aston Martin, Bentley, JLR, and Rolls-Royce more affordable in India.
- A quota for eligible vehicles under the reduced tariff is yet to be announced.
This FTA marks a significant step in trade relations between India and the UK, particularly poised to reshape the landscape of the luxury automotive market in India.
