Currently, Completely Built-Up Units (CBUs) that are exported from global markets in India attract over 100% tariffs, making their prices shoot up steeply.
Governments of India and the United Kingdom have wrapped up negotiations on a free trade agreement that is soon going to be signed.
The said agreement will bring down the super-high tariffs on import of cars from over 100% to 10%, thereby reducing certain car prices in India.
Major British manufacturers like Jaguar Land Rover, Rolls Royce, Aston Martin, and Triumph, are likely to see reduction in prices of their cars in India, making their products more attractive in terms of pricing.
Things will also be made easier for Indian manufacturers looking to export their vehicles to the UK. Prospective beneficiaries include Mahindra for its electric SUVs and TVS for its motorcycles and subsidiary Norton.
In 2024, India imported Rs 650 crore worth of cars, Rs 30 crore worth of motorcycles, and Rs 1,150 crore worth of components to the UK. Exports during the same period stood at Rs 70 crore worth of tractors, Rs 50 crore worth of motorcycles, and Rs 1,590 crore in components.