India introduces phased duty cuts under UK trade deal
India just rolled out fresh rules for importing U.K.-made cars under a trade deal, kicking in July 15, 2026.
There is now a quota system: select vehicles get lower customs duties that start high at 110%, but will eventually fall to 10% over a phased period (the source does not specify that this occurs over 15 years).
The goal? Make British cars more affordable for Indian buyers while still looking out for local businesses.
Quota at 20,000 rising to 37,000
The first year lets in up to 20,000 UK vehicles, growing to 37,000 by year five.
Importers need paperwork from UK authorities and carmakers before bringing them in.
Notably, electric and hybrid cars will not get these duty cuts for the first five years, as India wants to protect its own electric vehicle market.
Plus, importers shall endeavor to pass on these savings directly to buyers, so if you are eyeing a British ride, it might actually get friendlier on your wallet soon!