Overview
- The India‑UK Comprehensive Economic and Trade Agreement will enter into force on July 15, 2026, and its full text sets the quota and tariff schedule for autos.
- Over the first 15 years India will allow a cumulative 378,000 conventional-engine passenger cars from the UK to enter at concessional duties, with annual quotas peaking at 37,000 units in year five and settling at 15,000 units per year from year 15.
- Year-one concessions are tightly split by engine size: 10,000 units of petrol >3,000cc/ diesel >2,500cc at 30% duty and two 5,000-unit bands for smaller engines at 50% duty, with rates phased toward a 10% floor for covered categories by year five.
- Electric, hybrid and hydrogen passenger cars receive no duty relief for the first five years and only become eligible from year six within price-banded, limited quotas that grow to a peak by year 15.
- Some UK luxury marques have announced pre-emptive price cuts for UK-built imports but consumer relief in India will be narrow because benefits require meeting origin rules and being allocated within small annual quotas, leaving mass-market EVs shielded by a GBP 40,000 price threshold.