Shifting price gears, British ultra-luxury cars set to get cheaper

FTA lowers duties on high-end imports, shields domestic players

- NITIN KUMAR

The India-UK Free Trade Agreement (FTA) is set to sharply reduce the price tags of ultra-luxury imported cars, with a calibrated structure that protects domestic automakers, smaller vehicles, and emerging technologies like electric vehicles.

Under the deal, import duties on high-end internal combustion engine (ICE) cars will be cut from 110% to 30% in the first year, bringing down the price of a ₹5 crore fully built luxury car to around ₹3 crore.

By the fifth year, as tariffs fall further to 10%, the same car could retail at just around ₹2.62 crore.

As earlier reported, the agreement specifically targets top-end ICE vehicles, meaning petrol engines above 3,000cc and diesel above 2,500cc, leaving out lower-capacity cars, EVs, hybrids, and hydrogen-powered models for the first five years.

This would enable British luxury brands better access to Indian buyers while insulating the domestic car market from immediate disruption.