Overview

• The FTA’s automotive chapter took effect on July 25, slashing import duties on high-end ICE cars to 30–50% under a 20,000-unit first-year quota.
• A 15-year reduction schedule will drive ICE tariffs down to 10% with an annual cap of 15,000 units.
• Electric, hybrid and hydrogen cars priced under £40,000 CIF now enter India duty-free, while models valued between £40,000 and £80,000 face 50% tariffs under a 400-unit cap.
• Industry bodies SIAM and SMMT along with Jaguar Land Rover have endorsed the phased cuts as a balanced approach to expanding consumer choice without undermining local automakers.
• Market analyses forecast price drops of up to 40% for models such as the Mini Cooper and Aston Martin as import duties decline.