India-UK FTA reduces UK car duties to 10% amid quotas
Big news for car fans: the new India-UK Free Trade Agreement will cut import duties on U.K.-made cars from a whopping 110% down to just 10%.
But there's a catch: these lower rates only apply to a limited number of cars each year, and mostly benefit premium models.
So, if you're hoping for cheaper budget rides, you might have to wait.
Yearly quotas set by engine size
The deal sets yearly quotas based on engine size.
For bigger engines (over 3,000cc petrol or 2,500cc diesel), only 10,000 cars get the reduced duty in year one (30%).
Smaller engines up to 1,500cc have a quota of 5,000 units at a 50% tariff.
Quotas peak at 37,000 cars per year by year five and gradually drop to 15,000 by year 15.
Midpriced EVs get phased cuts
Electric cars priced between 18144kg and 36287kg also score phased duty cuts, starting at a lower rate in year six and dropping to just 10% by year 10.
Budget EVs aren't included yet.