Luxury Car Buyers in India to Benefit from India-UK Free Trade Agreement
Key Ideas
  • The India-UK Comprehensive Economic and Trade Agreement will lead to reduced import duties on luxury cars from the UK, making brands like Rolls-Royce, Aston Martin, and Bentley more affordable for Indian buyers.
  • The agreement also includes a gradual reduction in customs duty on internal combustion engine (ICE) cars, opening up market access for British luxury automobile brands like McLaren and Jaguar Land Rover in India.
  • The deal is expected to boost the ultra-luxury segment in India, driven by a growing base of high-net-worth individuals and demand from Tier-2 cities, leading to increased investments in after-sales services and local presence by the British luxury carmakers.
  • In return, the UK will eliminate import duties on 'Made in India' electric, hybrid, and hydrogen vehicles from the sixth year onwards, providing Indian automakers like Mahindra & Mahindra and Tata Motors with enhanced access to the British market.
The India-UK Comprehensive Economic and Trade Agreement (CETA) is set to benefit luxury car buyers in India by reducing import duties on vehicles from the UK. As part of the agreement, customs duties on internal combustion engine (ICE) cars will be gradually reduced over five years, making luxury brands like Rolls-Royce, Aston Martin, and Bentley more affordable for Indian consumers. This reduction in duties will also allow British luxury automobile brands such as McLaren and Jaguar Land Rover to gain increased market access in India. The deal is expected to stimulate the ultra-luxury segment in India, driven by a growing number of high-net-worth individuals and rising demand from Tier-2 cities. This momentum is anticipated to lead to more investments from British luxury carmakers in after-sales services and local presence to cater to the Indian market. In addition to the benefits for luxury car buyers, the agreement includes provisions for the UK to eliminate import duties on 'Made in India' electric, hybrid, and hydrogen vehicles from the sixth year onwards. This will offer Indian automakers like Mahindra & Mahindra and Tata Motors an opportunity to expand their presence in the British market with their green vehicle offerings. Overall, the India-UK Free Trade Agreement marks a significant milestone for both countries' automotive industries, providing mutual benefits for luxury car buyers in India and enhancing market access for Indian automakers in the UK.
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