India-UK FTA cuts British luxury car import duties to 10%
Big news for car lovers: the new India-UK Free Trade Agreement is set to drop import duties on British luxury cars from a steep 110% down to just 10% over the next five years.
This means high-end brands could soon be much more affordable, giving both Indian buyers and UK carmakers something to look forward to.
Tariff cuts phased through yearly quotas
The tariff cuts will not happen all at once. They will roll out through a yearly quota system.
In year one, bigger gasoline (over 3,000 cc) and diesel (over 2,500 cc) cars will see duties fall to 30%, but only for up to 10,000 units. Mid-sized models get a reduced 50% duty with smaller quotas.
By 2031, all regular gasoline and diesel cars should have a flat 10% duty with higher import limits.
Electric and hybrid vehicles will need to wait until year six for any real benefits.