Will Luxury Cars Get Cheaper?

India–UK FTA Deal: Signed on 24 July 2025, the India–UK Free Trade Agreement (also known as CETA) marks India’s first comprehensive trade deal with a major European economy. The pact eliminates tariffs on 99% of Indian exports to the UK, while Indian tariffs on British goods including luxury autos will gradually drop from over 100% to around 10% under quota, over a decade or more.

Cheaper Luxury Cars in India

Perhaps the most headline-grabbing impact? Signed-off import duties on British luxury vehicles from Jaguar, Land Rover, Rolls-Royce, Bentley, Aston Martin, to McLaren falling to 10% within quota limits. Initially, vehicles like the Mini Cooper and Defender (built abroad) could see a 30–40% price cut, dropping from around ₹45 lakh to ₹27–₹32 lakh levels in year one. However, the benefits apply only to top-end ICE cars and high-end EVs priced above £80,000 (CIF) and under an annual quota projected at 20,000 units initially, rising over time.

Note: Models like the Jaguar Land Rover Defender built outside the UK remain outside these concessions and may stay pricier unless locally produced.

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India–UK FTA Deal: What About Indian Auto Brands?

Indian firms get a major boost too Indian-made vehicles (especially EVs and auto components) now enjoy zero-duty access to the UK market, creating huge export potential for Tata Motors, Mahindra, Maruti, Royal Enfield, TVS, and Bajaj. Tata-owned Jaguar Land Rover also gains via easier re-export of India-assembled models. Two-wheeler firms like Royal Enfield and TVS could significantly scale sales in the UK market.

The agreement protects India’s mass-market automobile base, excluding vehicles priced below £40,000 (around ₹46 lakh) from tariff reductions ensuring that affordable ICE cars and mid-range EVs (the segments dominated by Indian manufacturers) remain shielded from competition. Duties for out-of-quota imports will fall gradually from 50–60% in early years to 10% after around 10–15 years, but only under annual quotas that peak at around 37,000 units by Year 15. SIAM (Society of Indian Automobile Manufacturers) praised this thoughtful framework as balancing consumer savings with domestic industry protection.

How it’s Beneficial?

Consumers looking for luxury British cars may finally see competitive pricing especially once production or imports meet quota eligibility (e.g., JLR’s India EV production).

Indian car manufacturers and component exporters can grow duty-free in UK markets, thereby increasing international footprints and exports.

Still very protected, the mass-market segment dominated by sub-₹50 lakh cars and Indian EV brands allows them to keep expanding internationally and domestically without compromise.

The India–UK FTA is a strategic win–win for Indian consumers, the promise of more affordable U.K. luxury cars. For Indian manufacturers especially in EVs and components as it unlocks broader global ambitions. Financial protections and quotas ensure the deal doesn’t undercut India’s domestic auto industry. In short: yes, some foreign cars may go cheaper but key made-in-India segments remain firmly same.

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