India-UK Trade Deal: The effect of India-UK trade deal will be visible, the price of vehicles will decrease

India-UK Trade Deal: The Free Trade Agreement (FTA) has recently been finalised between India and the UK, under which there will be a huge reduction in import duty on cars and two-wheelers imported from the UK to India. As per the new rules, the import duty will be reduced from the current 110% to 50% in the first year. This reduction will be implemented in a phased manner and by the fifth year the import duty will be reduced to only 10%. This will greatly benefit British premium car and bike manufacturers in importing their vehicles to India. Let's take a look at some of the major cars and bikes that will become cheaper under this agreement.

Rolls-Royce

The prices of model ranges like Phantom, Ghost, and Cullinan of Britain's most prestigious luxury car maker Rolls-Royce start at ₹ 6 crore in India. After the reduction in import duty under the FTA, especially the fully electric Rolls-Royce Spectre will see a significant drop in price. With import duty reduced by 10% by the fifth year, these cars will become more affordable.

Bentley

Cars like Bentley's Bentayga, Continental GT, and Flying Spur will also benefit from this agreement. These models are priced above ₹5 crore, and the import duty cut will reduce their prices. This move will make Bentley more competitive in the Indian market.

Jaguar

Tata-owned Jaguar currently sells only the F-Pace model in India, which is locally assembled. However, the imported Jaguar models will see a reduction in prices under the FTA. This will open up new possibilities for the brand in the Indian market, especially in the premium segment.

Land Rover

Jaguar Land Rover (JLR)'s fully imported models like the Range Rover SV and Range Rover Sport SV will benefit from this agreement. The prices of their luxurious variants will come down due to the reduction in import duty. However, some variants of the Range Rover Sport and LWB are locally assembled in India, which are expected to see a slight reduction in prices.

Aston Martin

Aston Martin's cars like Vantage, DB12, Vanquish, and DBX SUVs, which are manufactured at the company's Gaydon headquarters in the UK, are fully imported to India. Their prices range from ₹4 crore to ₹9 crore (ex-showroom). The reduction in import duty under the FTA will make these cars more affordable.

Lotus

British sports car brand Lotus' Emira sports car, which has a 360 bhp 2.0-litre petrol engine, will benefit immediately under the FTA. At the same time, the Lotus Eletre and Emeya electric SUVs will get the benefit of tariff reduction after the fifth year. This will further strengthen Lotus' position in the midsize sports car segment.

McLaren

McLaren's 750S and GT supercars will also see prices reduced under the new rules. The McLaren 750S is powered by a 4.0-litre V8 engine that produces 740 bhp and 800 Nm, and it can do 0-100 kmph sprints in just 2.8 seconds. The price cut from the FTA could make this supercar more attractive to Indian buyers.

Norton Motorcycles

Among two-wheelers, Norton Motorcycles is expected to get the biggest benefit from the FTA. The British company owned by TVS is planning to launch its V4 motorcycle in India by the end of 2025. The reduction in import duty will make Norton bikes more competitive, and will also make it easier to export bikes in the 450cc segment to the UK.

Triumph Rocket 3 Evel Knievel

Most of Triumph's bikes are not made in the UK, but special edition models like the Rocket 3 Evel Knievel will be cheaper due to the FTA. This will make Triumph's special edition models more attractive. Also, models like the Speed 400 and Scrambler 400 X which are manufactured in India will become more accessible to UK customers.

Mini

The MINI Cooper S and Cooper S Convertible, which are manufactured in the UK, will become cheaper under the FTA. BMW Group India recently introduced a price protection scheme for MINI buyers, under which customers who purchase the 3-door car after the FTA announcement will get benefits.