Home / Business and Economy / India Opens Doors to UK Cars: Duty-Free Deals Ahead
India Opens Doors to UK Cars: Duty-Free Deals Ahead
18 Jun
Summary
- India allows duty-free import of UK electric and hybrid cars from year six.
- Conventional cars from UK get duty concessions for 15 years.
- Quotas expand for UK car imports into India under new trade pact.
The India-UK Comprehensive Economic and Trade Agreement (CETA), effective from July 15, will introduce significant changes to automotive imports. Indian manufacturers will benefit from duty-free exports of electric, hybrid, and hydrogen passenger cars to the UK within specific price brackets starting from the sixth year.
For imports into India, conventional engine passenger cars from the UK will receive reduced import duties over 15 years. Quotas for these vehicles will increase, reaching a peak in the fifth year before stabilizing. India has protected its mass-market electric vehicle segment by not allowing imports below GBP 40,000.
Electric, hybrid, and hydrogen vehicles priced between GBP 40,000 and GBP 80,000 will see duties reduced to 50% by the tenth year, with higher-priced models also receiving duty reductions. Zero-emission two-wheelers, buses, and trucks are excluded from these concessions.
