Pioneer In Short

UK cars get easier India access

India will allow the import of 3.78 lakh conventional-engine passenger vehicles from the UK at concessional customs duties over the first 15 years of the India-UK Comprehensive Economic and Trade Agreement (CETA), which comes into force on July 15. Under the pact, tariffs on eligible automotive imports will be reduced from up to 110 per cent to 10 per cent, subject to annual quotas. India will permit imports of 20,000 passenger cars in the first year, rising to a peak of 37,000 units annually by the fifth year before stabilising at 15,000 units from the 15th year onward. India has protected its domestic mass-market EV industry by excluding electric vehicles priced below £40,000 from tariff concessions. No duty cuts will apply to imported electric, hybrid or hydrogen passenger cars during the first five years.

Concessions for such vehicles will begin from the sixth year under limited quotas. The agreement also opens the UK market to Indian-made electric, hybrid and hydrogen vehicles. Duty-free exports in the £20,000-£80,000 price range will be allowed from the sixth year, with quotas rising to 88,000 units by the 15th year. Industry players, including Maruti Suzuki and Tata Motors, welcomed the pact, saying it would boost exports and support India’s ambitions as a global automotive manufacturing hub.