India-UK FTA Agreement Effect On Indian Auto Industry: Will Cars Actually Get Cheaper?

The lowered import duties will incorporate certain cars and brands based on various parameters plus there would be a quota too. There will be a different quota on EVs and ICE cars

Mini cars would be cheaper in India and we can even see some UK made cars being brought in

Source : Somnath Chatterjee

India and the UK will sign a free trade agreement (FTA) which includes India reducing import duties to only 10 percent from 100 percent. Hence, this means the prices of certain cars exported from the UK would get massively cheaper but what cars will fall in this bracket? Well, the lowered import duties will incorporate certain cars and brands based on various parameters plus there would be a quota too. There will be a different quota on EVs and ICE cars while it would not be applicable on low cost cars.

 

Plus, the main question is that the effect will be seen from a year or two years from now. So, if you are thinking that some British cars imported to India will immediately get a massive price drop then you are wrong. Plus, it remains to be seen what cars qualify for this because the Range Rover and the Range Rover Sport are already assembled in India which means they would not be affected while we can see certain CBU Land Rover cars having potentially a price cut but only after these are approved plus rolled out which will take nearly two years.

 

 

So most probably ily a fraction of imported cars would be cgea[er but this agreement could also open doors for more manufacturers to bring imported cars here made in the UK.  This means Mini cars would be cheaper in India and we can even see some UK made cars being brought in although again the quotas and the classification remains to be seen. In the end if you are thinking of buying a Defender which isn't even made in the UK or a Range Rover at a fraction of that cost, it will most probably not happen for now.