Indian auto sector scores twin wins in FTA with UK

UK market opens for local manufacturers, but domestic hybrid and EV vehicles protected

- Manas Pimpalkhare & Ayaan Kartik

India's automakers are set to gain access to the UK market as the free-trade pact between the two nations removes 18% duty on exports to the European nation.

The India-UK Comprehensive Economic and Trade Agreement (CETA) also protects the domestic clean mobility market by offering no concessions to the UK. "India shall not provide any out-of-quota preferential customs duty on zero emission vehicles (electric, hybrid or hydrogen fuel vehicles)," the trade documents by the UK government said.

Domestic hybrid vehicle sales rose about 12% year-on-year to 365,024 in FY25, while pure electric vehicle (EV) sales rose 17% to 1,967,313 units, showed data from the Vahan portal.

However, concessions offered by India, the world's third-largest auto market by sales, will make luxury car imports from the UK cheaper. Models from companies including Tata Group-owned Jaguar Land Rover, Aston Martin, and Rolls-Royce can get cheaper in India, which saw 51,000 luxury car sales in FY25.