British Luxury cars to become cheaper in India under new trade pact

New Delhi: British luxury automotive brands such as Rolls-Royce, Bentley, and Aston Martin are expected to become more affordable in the Indian market following tariff reductions under the recently signed India-UK free trade agreement.

The deal, formally known as the Comprehensive Economic and Trade Agreement (CETA), was signed in London on Thursday in the presence of Prime Minister Narendra Modi and his British counterpart, Keir Starmer.

Under the terms of the agreement, import tariffs on cars will be reduced significantly, from the current rate of around 110% to 10%, within agreed quotas on both sides. The move is expected to boost the presence of British carmakers in what is currently the world’s fastest-growing major economy, particularly among high-net-worth individuals.

Rolls-Royce cars are currently priced between Rs 7.5 crore and Rs 12.25 crore in India. Bentley’s models range from Rs 5 crore to over Rs 7 crore, while Aston Martin cars are priced between Rs 3.99 crore and Rs 8.85 crore. 

Jaguar Land Rover vehicles are available from around Rs 68 lakh to Rs 2.75 crore. Lotus models are priced between Rs 2 crore and Rs 3 crore, and McLaren vehicles are tagged from approximately Rs 4.5 crore to Rs 6 crore.

The tariff cuts are expected to offer a significant incentive for British automotive manufacturers to expand their footprint in the Indian luxury vehicle segment.