Cars to Become Cheaper in India
This deal is very significant for the auto world. Several premium cars imported from the UK will become cheaper in India due to lower tariffs.
According to the UK Department of Business and Trade, British automobile companies will get better access to the Indian market. Tariffs on automobiles under the quota system will be reduced from 100% to 10%.
Jaguar Land Rover (JLR) has already announced price cuts on two Range Rover models. The price of Range Rover SV has been reduced by Rs 75 lakh to Rs 3.50 crore. The Range Rover Sport SV price has been cut by Rs 40 lakh to Rs 2.35 crore.
British supercar maker McLaren is also preparing to reduce prices of its cars by up to 38%. The McLaren 750S Coupe price is expected to drop by Rs 3 crore to Rs 4.94 crore.
The FTA will bring major tariff reductions. For petrol engines above 3000cc and diesel above 2500cc, tariffs will be reduced from 110% to 30% for the first year under a quota of 10,000 vehicles.
For petrol engines between 1500cc-3000cc and diesel up to 2500cc, tariffs will come down from 66% to 50% for a quota of 5,000 vehicles. For engines up to 1500cc, tariffs will also be 50% for another quota of 5,000 vehicles.
This agreement is being described by the UK as the most comprehensive trade deal India has signed so far. Both sides expect significant growth in bilateral trade and investment due to the FTA.
Prime Minister Narendra Modi has welcomed the deal, saying it will open new opportunities for farmers, workers, MSMEs, and startups and contribute to the goal of Viksit Bharat 2047.
