India-UK Trade Deal: Luxury Cars and EVs Are Getting Cheaper!

The Indian government (Directorate General of Foreign Trade) has just rolled out a new Tariff Rate Quota (TRQ) system under the India-UK Comprehensive Economic and Trade Agreement (CETA).

In plain English? A set number of British cars can now enter India every year at massive tax discounts.

· The Big Tax Cuts

Luxury Petrol & Diesel Cars: High-end, large-engine vehicles will see import taxes plummet from a base rate of customs duty of 110% down to just 10% over the next 5 years.
Electric & Hybrid Vehicles: Premium UK-made electric cars (valued over £40,000) will see duties slashed to as low as 10% or even 0% depending on the timeline.
Commercial Goods Vehicles: Cargo trucks will also enjoy a reduced in-quota duty of 8.8% (down from 44%).

India-UK Trade Deal CETA infographic showing major tax cuts on luxury petrol and diesel cars, electric and hybrid vehicles, and commercial goods vehicles, with reduced in-quota customs duties under TRQ benefits.

· How the Quota System Works

Authorized Sellers Only: Only Original Equipment Manufacturers (OEMs) or their authorized dealers can apply for these tax breaks.
Proof of Origin: Importers must show a valid Certificate of Origin to prove the vehicle was built in the UK.
Savings Passed to You: The policy explicitly states that importers should pass these concessional customs duty savings directly to the final buyer.

Why CETA Quota System is Important

The CETA Quota System is important for vehicle importers because it helps reduce customs duty on eligible UK-origin vehicles. However, the benefit is available only within the approved TRQ quota limit. Therefore, importers should check eligibility, HS code, Certificate of Origin, DGFT process, and required documents before applying. Proper planning can help businesses save import costs and complete customs clearance smoothly.

CETA Quota System helps eligible importers claim TRQ benefits on UK-origin vehicles. Under the CETA Quota System, importers must follow DGFT rules, quota limits, and customs documentation requirements.

· The Bottom Line

This deal is a major win for car enthusiasts. Expect a wider variety of premium British cars, luxury SUVs, and advanced electric vehicles on Indian roads at much more competitive prices.

Which British car brand are you most excited to see at a lower price? Let us know in the comments below!