Rolls-Royce, Bentley, Land Rover and other British vehicles to become more affordable: India, UK ink landmark trade deal

British cars and bikes are set to become much more affordable in India thanks to a new Free Trade Agreement (FTA) between India and the United Kingdom. According to a HT Auto report, the deal will cut import taxes on fully built vehicles from the UK from over 100 per cent to just 10 per cent, though only for a limited number of units.

This move will especially help British luxury car brands like Rolls-Royce, Bentley, Jaguar Land Rover, Lotus, Aston Martin, and McLaren. Premium motorcycle makers such as Triumph, BSA (owned by Classic Legends), and Norton (owned by TVS) will also benefit.

Notably, these high-end vehicles are usually imported into India as Completely Built Units (CBUs), which makes them much more expensive due to high import duties. With the new FTA, these vehicles could see a major drop in prices, making them more attractive to Indian buyers—though the lower tax will only apply to a set number of imports.

The deal is also a big win for India’s auto parts industry, which supplies components to many global carmakers. It may help boost exports of Indian-made cars and bikes to the UK, especially electric vehicles (EVs), as the FTA makes it easier for Indian companies to enter the British market.

Reportedly, carmakers like Nissan and Toyota, which have factories in the UK, may now consider bringing some of their models to India through the CBU route. The deal might also encourage Chinese EV makers to offer more premium products in India.

Saurabh Agarwal, Partner and Automotive Tax Leader at EY India, said, “This deal should really help our auto parts makers sell more in the UK. Indian buyers might also get to buy premium cars at better prices soon after they launch globally. But it’s unlikely to hurt Indian car companies too much, since most buyers here still prefer more affordable vehicles.”

Apart from cars, the agreement is expected to benefit other industries as well, especially those involving technology and labour.