India-UK Free Trade Deal to Gradually Cut Car Import Duties
India’s Free Trade Agreement (FTA) with the United Kingdom, signed in May 2025, outlines a phased reduction in car import duties over 10–15 years. The cuts will be conditional, based on vehicle engine size and price, to protect India’s domestic auto sector while encouraging bilateral trade.
The agreement is set to benefit companies like Tata Motors and its subsidiary Jaguar Land Rover by making British vehicles more accessible to Indian buyers. However, to shield local manufacturers, the deal restricts the entry of lower-cost vehicles that could disrupt the market.
The India-UK FTA aims to double trade between the two nations by 2030. Although the pact is expected to bring advantages to the auto sector, analysts believe it will not result in drastic price drops for luxury cars. Final guidelines on duty implementation and import quotas are still being developed and will roll out in stages.