India and the UK have concluded a landmark trade deal that should give a boost to our country’s automotive sector, along with opening opportunities for both nations to have cheaper imports. As part of the free trade agreement, India will reduce tariffs on “high-end cars” imported from the UK from the current 100 percent to just 10 percent. Meanwhile, “India will gain from tariff elimination on about 99 percent of the tariff lines, covering almost 100 percent of the trade value,” the release stated. However, quotas will be established for automobile imports on both sides, it added.
British luxury cars to become more affordable
Cars from JLR, Aston Martin, Bentley and Rolls-Royce price to reduce
As the duty on imports from made-in-UK cars will come down drastically, carmakers like JLR, Aston Martin, Bentley and Rolls-Royce – all of whom manufacture in the UK and import models to India – will likely benefit from a price reduction across their respective portfolios. The UK government’s press release states that it has secured “India’s best-ever agreement on rules of origin”. This indicates that cars exported to India may not require local content in order to comply with the new tariff rules.
Among the points of clarification still required from both governments are the number of models that will be tariff-free, and what constitutes a “high-end car”.
Rs 650 crore worth of cars imported to India from the UK in 2024
In 2024, India imported cars worth Rs 650 crore from the UK, while motorcycle imports stood at Rs 30 crore; the Indian government site also lists auto parts imports worth Rs 1,150 crore during the year. Among the luxury brands present in India – from Mercedes-Benz and BMW to Bentley, Ferrari and Rolls-Royce – JLR accounted for imports worth over Rs 500 crore.
Made in UK limited edition Triumph bikes will become cheaper
The free trade agreement will also mean limited-edition Triumph bikes, like the Rocket 3 Evel Knievel edition, are also likely to reduce in price, as they are directly brought in from the UK. We’ll have to wait and see how much that amounts to when further clarification is provided.
Carmakers and bike manufacturers in India could benefit
Mahindra, Maruti Suzuki, Toyota, JLR, Royal Enfield, TVS and Bajaj could leverage tariff elimination on imports to UK
The India-UK free trade agreement will also be beneficial for India manufacturers like Mahindra, Royal Enfield, TVS and Bajaj, and international companies that manufacture in India, like JLR, Maruti Suzuki and Toyota. These brands are currently importing or plan to import made-in-India models to the UK.
Mahindra Executive Director and CEO, Auto and Farm Sectors, Rajesh Jejurikar, had said that the brand is looking at launching the BE 6 and XUV 9e in the UK, “We do have a plan to go to the EU with our electric vehicles at some point in the future, but that will be in a calibrated way. We will do right-hand-drive EVs first and then move to left-hand-drive.” The FTA will help price Mahindra’s EVs competitively among other similar-sized e-SUVs in the UK market.
Maruti and Toyota’s first EVs, the e Vitara and Urban Cruiser, respectively, are being produced at Suzuki’s Gujarat plant for domestic sales and export, including the UK. The free trade agreement will also help price the Japanese company’s EVs well for the UK market, where it may also go up against the Mahindra BE 6.
That JLR already locally assembles the Range Rover Evoque, Range Rover Velar, Range Rover and Land Rover Discovery Sport at its Pune plant, means that prices for these models may also reduce in India.
There are a few Indian bike makers – Royal Enfield, TVS and Bajaj – who will be able to benefit from the FTA between the two nations. Royal Enfield’s entire portfolio is sold in the UK, which creates opportunities for the brand to start exports from India. Meanwhile, Piaggio, TVS and Bajaj make select models – the Aprilia 457, upcoming Norton bikes and Triumph 400s and sub-400cc KTMs, respectively – in India for the UK market. These would likely see a rationalisation in price as well, making them more affordable there.
Also see:
Tata loses ground to MG, Mahindra in April 2025 EV sales
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New Maharashtra EV Policy 2025: car subsidies, toll waivers explained
