Jlr, Stellantis, Tvs Motor To Benefit From india-uk fta

The India-UK free waste and acquisition statement is poised to coming a important boost to nan home automobile industry, particularly successful position of premiumisation. This comes astatine a clip erstwhile nan home automobile manufacture is facing uncertainty owing to 25% tariffs by nan US.
 
While nan matter of nan woody is still nether wraps, an charismatic connection by nan Indian authorities says that nan woody opens up monolithic export opportunities for labour-intensive industries and cardinal sectors specified arsenic engineering goods, car parts and engines, and integrated chemicals.
 
Under nan FTA, nan import work for car parts will go zero. Under nan recently signed UK-India Free Trade Agreement (FTA), India has agreed to importantly trim import tariffs connected British automobiles. Currently, these tariffs tin beryllium arsenic precocious arsenic 100%, but they will beryllium gradually lowered to 10%.
 
According to Kumar Rakesh, analyst-IT and car astatine BNP Paribas, nan FTA is apt to summation much premium models successful India. “Given that astir of nan beneficiaries are premium/luxury OEMs, we do not spot immoderate worldly effect connected India-listed rider conveyance OEMs. That said, we could spot a somewhat higher number of premium/luxury vehicles trading successful India, which are presently minuscule,” says Rakesh. 
 
In CY2024, India imported cars weighted astatine astir ₹650 crore from nan UK. Luxury brands specified arsenic Mercedes-Benz, Jaguar Land Rover (JLR), BMW, Rolls-Royce, Aston Martin, and Bentley were nan superior contributors, collectively accounting for complete ₹500 crore of these imports. The import worth for motorcycles stood astatine astir ₹30 crore. Indian manufacturers imported car parts worthy ₹1,150 crore from nan UK, reflecting ongoing reliance connected British components for home conveyance production.
 
Saurabh Agarwal, Partner & Automotive Tax Leader, EY India, says that nan woody is apt to summation car constituent exports to nan UK arsenic good arsenic import of premium models. “This woody should really thief our car constituent makers waste much successful nan United Kingdom. At nan aforesaid time, Indian consumers mightiness beryllium capable to bargain premium cars astatine nan correct value constituent arsenic soon arsenic they are launched globally. It astir apt won't shingle up our Indian car manufacturers excessively overmuch because astir Indian consumers still for illustration nan much affordable options. What this statement really shows is that nan authorities wants to create a level playing field, which is bully news for each Indian consumers successful nan agelong run. This could besides group a precedent for much specified deals down nan line,” says Agarwal. 
 
In nan rider conveyance segment, Tata Motors-owned Jaguar Land Rover is apt nan biggest beneficiary of nan FTA. “Most automotive manufacturing plants successful nan UK are of premium and luxury brands, specified arsenic Bentley, BMW, Rolls-Royce, and Aston Martin. While among them, JLR could beryllium a cardinal beneficiary, we statement that 1 of its cardinal models, nan Defender, is not manufactured successful nan UK. Also, JLR already uses its India-based assembly works for respective models to bask nan little duty,” notes Rakesh. 
 
Mahindra & Mahindra, nan country’s largest SUV manufacturer, is besides apt to use arsenic it plans to export its calved electrical vehicles to nan right-hand marketplace for illustration nan UK. “We do person a scheme to spell to nan EU pinch our electrical vehicles astatine immoderate constituent successful nan future, but that will beryllium successful a calibrated way. We will do right-hand-drive EVs first and past move to left-hand-drive. So, we are a while away, and of course, based connected what gets negotiated done nan EU agreement, it will facilitate america to Make successful India for nan world,” said Rajesh Jejurikar, ED & CEO- Auto & Farm astatine Mahindra & Mahindra, successful a caller property conference.

Meanwhile, amongst nan mass-market players, Stellantis could bring much models nether its immoderate models that it manufactures, nether brands specified arsenic Vauxhall, Peugeot, and Citroën, to India, according to Rakesh. 
 
In nan two-wheeler segment, 1 of nan cardinal beneficiaries successful nan two-wheeler conception would beryllium TVS Motor, which plans to bring nan iconic British motorcycle marque successful India this year. 
Exports of motorcycles amounted to ₹50 crore, indicating a increasing liking successful Indian two-wheelers among UK consumers.
 
“We admit nan effort taken by nan authorities to make this historical India-UK Free Trade Agreement. Our British marque Norton will motorboat later this year, and this statement will thief america standard faster and leverage communal proviso chains,” says Sudarshan Venu, Managing Director, TVS Motor.

Published on: May 7, 2025 8:00 PM IST