No Freeway for British Luxury Cars

Experts say even with lower duties, impact of FTA on domestic automakers will be minimal

- ARSHAD KHAN @ New Delhi

INDIA has granted limited access to UK-based carmakers under the FTA, offering major import duty cuts and large quotas for high-end vehicles in initial years. However, the concessions are restrictive for mainstream luxury cars, and UK carmakers will be barred from entering India's electric vehicle market for the first five years.

The duty cuts and quotas mainly apply to vehicles with large engine capacities (petrol above 3000 cc and diesel above 2500 cc) in initial years. These vehicles cost over ₹1 crore and constitute a negligible share of India's car market. Industry experts suggest even with lower duties and reduced prices, the impact on domestic automakers will remain minimal.