India-UK Free Trade Agreement - Cheaper British Cars With A Catch

The India-UK Free Trade Agreement offers significant savings for luxury car buyers but comes with important limitations. Under the new trade pact, import tariffs on UK-made automotive imports will drop dramatically from the current 100-110% to just 10% - but only for a fixed number of fully built units annually.

Jaguar Land Rover emerges as the primary beneficiary, especially for exclusive models like the Range Rover SV and upcoming Jaguar EVs manufactured in the UK. However, most JLR vehicles sold in India, including the Range Rover Sport, Velar, and Evoque, are locally assembled and already exempt from full CBU tariffs, limiting the FTA's impact to niche models.

Interestingly, the popular Land Rover Defender, built in Slovakia, won't qualify for lower duties. JLR is considering assembling the Defender in India, which could potentially result in a 20% price reduction. Other British brands, including Mini, Rolls-Royce, Bentley, and Aston Martin, are also likely to gain, though eligibility varies by manufacturing location.

The key drawback remains the capped quota system, expected to cover only a few thousand units yearly.

Source: MotorBeam