The Indian government has published the quotas and tariffs for automobile imports from the United Kingdom under the bilateral trade agreement. The India-U.K. Comprehensive Economic and Trade Agreement will take effect on July 15.
According to the Directorate General of Foreign Trade notification, 20,000 completely built petrol and diesel passenger vehicles may be imported from the U.K. at reduced duties of 30-50 percent based on vehicle size, compared with the standard rate of 66-110 percent.
The quota will rise to 37,000 units by the fifth year, when the concessional duty will drop to 10 percent. After that, the quota will decline gradually to 15,000 vehicles by year 15.
The notification also details quotas and tariffs for electric, hybrid, and hydrogen passenger vehicles. Unlike conventional cars, which are graded by engine size, these vehicles are graded by landed cost.
Concessions for alternate-fuel vehicles begin only in year six, giving local manufacturers time before facing competition from U.K. brands.
No concessions apply to alternate-fuel vehicles with a landed cost below 40,000 pounds, roughly 51.2 lakh rupees. In year six, 400 vehicles priced between 40,000 and 80,000 pounds may enter at a 50 percent tariff, below the usual 110 percent.
This quota will rise to 2,000 vehicles annually by year 15, with the tariff falling to 10 percent by year 10.
Ultra-luxury alternate-fuel vehicles above 80,000 pounds receive the largest quota, starting at 4,000 units in year six and reaching 20,000 by year 15. Their tariff begins at 40 percent in year six and declines to 10 percent by year 10.
