India-UK FTA Car Price Drop 2025: Now, cars like Rolls-Royce, Bentley and Triumph will no longer be a dream for ordinary Indians. Yes, because the new Free Trade Agreement (FTA) between India and the United Kingdom (UK) is going to bring tremendous benefits to both countries, especially its effect will be seen more on the automobile sector. After this agreement, we can see a drop in the prices of luxury cars and bikes. Let’s understand the whole story in detail.
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India-UK FTA Car Price Drop Speciality
India will now reduce the import duty on high-end cars coming from the UK from 100% to only 10%. This means that now luxury cars coming from abroad will be cheaper in the Indian market. However, there will be a fixed quota on the number of these vehicles, due to which only a limited number of these cars will be imported.
India-UK FTA Car Price Drop on These Cars
Expensive and luxury car brands made in the UK, such as Jaguar Land Rover (JLR), Aston Martin, Bentley and Rolls-Royce, may see a drop in prices. Their prices may now come down in India. Not only this, some limited edition bikes imported from the UK, like Triumph Rocket 3 Evel Knievel Edition, may also become more affordable now.
What is the Benefit to India?
India will also benefit from this deal. Tariffs will be removed on products with about 99% of India’s trade value. This means that it will now become cheaper and easier for Indian companies like Mahindra, Royal Enfield, TVS, and Bajaj to export cars and bikes to the UK.
Mahindra and Maruti Are Also Ready
Mahindra is preparing to launch its electric models BE 6 and XUV 9e in the UK. At the same time, Maruti and Toyota’s first EVS, e-Vitara and Urban-Cruiser, will also be exported to the UK from Gujarat. Due to lower taxes, selling these vehicles in the UK can now be more profitable.
India has signed a Free Trade Agreement (FTA) with the UK. So, some luxury cars are likely to get cheaper.
— ET Money (@ETMONEY) May 8, 2025
It is great for car lovers, but an even bigger development for Tata Motors' shareholders.
Here are 3 reasons why Tata Motors stands to gain big. 👇🧵 pic.twitter.com/ynV9Z8CeMW
Indian Bikes will Shine in the UK
The entire range of Royal Enfield is sold in the UK. FTA will make its prices more attractive. Bajaj and TVS also make some models in India for the UK, such as the Triumph 400 and Norton bikes.
The India-UK Free Trade Agreement is a big step that will make luxury cars affordable for the common man and strengthen Indian auto companies on the global stage. Now it remains to be seen how the government defines a “high-end car” and when this rule comes into effect.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗