New Delhi. The UK-India has signed a free trade agreement (FTA) yesterday. After this, there is going to be a big stir in the Indian car market. So far, British luxury cars with more than 100 percent import duty, such as Rolls-Royce, Range Rover and Bentley, may be far more economical for Indian customers. Under this historic agreement, the import duty on cars manufactured in Britain will be reduced to just 10 per cent, which was 100 per cent or more so far.

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With this announcement, revolutionary changes are expected in the luxury car segment in India. The agreement announced by British Prime Minister Kier Starmer and Indian Prime Minister Narendra Modi will take business relations between the two countries to a new height. The deal has been completed after a long conversation of almost three years, and both Indian consumers and British vehicle manufacturers – will get its direct benefit.

Under this agreement, a quota-based system will be implemented, with a limited number of UK-made cars will be charged only 10 per cent. High-end brands like Jaguar Land Rover, Aston Martin, Bentley, McLaren and Rolls-Royce can now be quite cheap than before.

Potential prices changes (estimated):

Car model current price (ex-showroom) estimated new price (ex-showroom)

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Aston Martin Vanquish ₹ 8.85 Crore ₹ 4.86 Crore

Range Rover Sport ₹ 1.45 Crore ₹ 79.75 Lakh

Rolls-Royce Cullinan ₹ 6.95 Crore ₹ 3.82 Crore

Bentley Bentayga ₹ 4.10 Crore ₹ 2.25 Crore

These figures have been prepared on the basis that the entire tariff cut will be delivered to the customers. However, the final prices may have a slight difference, as the pricing policies of state tax, logistics and brands may vary.

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Trade agreement will not only make the prices of British cars more competitive in India

This trade agreement will not only make the prices of British cars more competitive in India, but will also give UK vehicle manufacturers a big opportunity to increase their share in the fast growing market like India. In the year 2024, the UK exported motor cars worth about ₹ 650 crore to India, bikes worth ₹ 30 crore, and auto parts worth ₹ 1,150 crore.

The agreement is now waiting for the approval of the parliaments of the two countries, which is likely to be completed in the next one year. But for Indian customers, it can be possible to see luxury becoming an affordable option, not just a dream.