India lays out tariffs and quotas for U.K. vehicles under trade deal
The Indian government has finalized tariff and quota structures for UK-manufactured vehicle imports under the new India-UK trade deal. The agreement includes specific concessions for conventional and electric vehicles, with a phased implementation to protect domestic manufacturers.
Why it matters
This trade agreement marks a significant shift in automotive market access between India and the UK, balancing consumer choice with domestic industrial protection.
The Indian government has released the list of quotas and tariffs for automobile imports from the United Kingdom under the trade deal between the two countries. The India-U.K. Comprehensive Economic and Trade Agreement (CETA) will come into force on July 15.
As per the Directorate General of Foreign Trade’s notification, a total of 20,000 completely built units (CBUs) of petrol and diesel passenger vehicles will be allowed for import from the U.K. at concessional rates of 30-50%, depending on the size of the car, down from the normal import duty of between 66-110%.
This quota will increase to 37,000 cars by year 5 of the deal, which is also when the concessional tariff will settle at 10% and remain there. However, after this, the size of the quota will gradually decrease, settling at 15,000 passenger vehicles in year 15.
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