JLR Gets Big Import Quota Under India-UK Trade Deal

Jaguar Land Rover (JLR) India has been allocated a quota of 325 cars under the recent India-UK Comprehensive Economic and Trade Agreement (CETA). This significant allocation constitutes more than half of the 642 units approved by the government in the initial application phase for preferential duty imports.

The government has approved six out of eight applications received for the 2026 import quota, which allows for 4,200 units to enter India at reduced tariffs. This trade pact took effect on July 15, 2026, with the quota set for the remainder of the calendar year.

Other automotive manufacturers like BMW India and Skoda Auto Volkswagen India received allocations of 75 cars each. Dealerships such as Select Cars, K U N Motor Company, and Infinity Cars also secured quotas. This preferential duty structure offers considerable savings compared to standard Indian import tariffs.

For instance, the basic customs duty on petrol cars exceeding 3,000 cc has been slashed to 30% from 110%. Similarly, duties on cars with engine capacities up to 1,500 cc are reduced to 50% from 66%. A separate quota exists for goods transport vehicles, with duty reduced to 37% from 44%. The Directorate General of Foreign Trade (DGFT) managed the application process, which required eligible importers to have pre-purchase agreements from UK vehicle manufacturers. These reduced tariffs aim to facilitate smoother trade and provide access to the Indian market for UK-manufactured vehicles under the CETA framework.