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Informist, Thursday, Jul. 24, 2025

 

NEW DELHI – India, which has committed to duty concessions on the import of automobiles and auto products from the UK under the trade deal signed on Thursday, has included enough riders to protect the domestic industry, the commerce ministry said. India will reduce the duty on auto imports from the UK to 10% over five years only under tariff rate quotas, the commerce ministry said. Without the quota, the duty will be lowered to 50% only over 10 years, it said.

 

"Offered quota and duty reduction is more on the large engine capacity categories (above 3000 cc petrol/2500 cc diesel)," the ministry said in a note. "It ensures the domestic sector sufficient time to expand, innovate, and enhance global competitiveness in our area of strength in small (up to 1500 cc) and mid segment (1500–3000 cc petrol/up to 2500 cc diesel)." 

 

The offer pertains exclusively to completely built units of passenger vehicles encompassing internal combustion engine vehicles as well as electric, hybrid, and hydrogen-powered vehicles, the ministry said. 

 

Additionally, there will be no duty cut on electric, hybrid, and hydrogen-powered vehicles in the first five years from the implementation of the deal. The deal may take a year to take effect after being ratified by both parties. 

 

India will grant market access to high-range EVs with a cost, insurance, and freight value of over 80,000 pound sterling (about $108,000). "The number of vehicles from internal combustion engines shall get deducted by the number of EVs getting concessions 6th year onwards to maintain the total quota volume of 37,000 units at the end of 15 years of duty concession," the ministry said. 

 

The UK, on the other hand, has committed to duty-free access to Indian conventional vehicles and auto components in the UK. "Electric, hybrid, and plug-in vehicles will be allowed limited concessional access under tariff rate quotas," the ministry said. 

 

"India has secured market access to the tune of four times its concession given to the UK on EVs," the commerce ministry said. The agreement is also expected to benefit India's two-wheeler manufacturers, especially in segments like scooters and motorcycles, which have a growing demand in the UK, according to the ministry.  End

 

US$1 = INR 86.41

 

Reported by Krity Ambey

Edited by Saji George Titus

 

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