DGFT notifies tariff-rate-quota for cheaper UK car imports under India-UK CETA

India has notified the procedure allowing concessional-duty imports of UK passenger cars under CETA (effective July 15), slashing duties from 110% to 10% over phased years. The quota permits 20,000 units in year one, rising to 37,000 by year five, totalling 3.78 lakh cars over 15 years across £40,000-£80,000 price bands.

— Source publishedFri, 10 Jul, 2026, 21:19 IST·First seen Fri, 10 Jul, 2026, 21:37 IST·Source BL · Consumer & Economy

What happened

DGFT · India notifies tariff-rate-quota procedure under India-UK CETA (effective July 15) allowing concessional-duty imports of UK passenger cars, cutting

Key facts

  • 110% to 10% duty reduction
  • 3.78 lakh cars over 15 years
  • 20,000 units first year
  • 37,000 units fifth year
  • 137,500 cleaner vehicles cumulative
  • £40,000-£80,000 price bands

Why this matters

Secure UK-brand distribution rights and quota allocations now to capture concessional-duty positioning before the phased volume ramp intensifies competition.

What to watch

  • TRQ allocation notifications and first-quota uptake data post July 15
  • Revised MRP announcements from UK-origin luxury brands
  • Domestic OEM or SIAM statements on reciprocal safeguards
  • EU/other FTA negotiators demanding parity on auto tariffs
  • Rules-of-origin enforcement to block non-UK transshipment
  • Luxury OEMs (JLR, BMW-Mini, Bentley) announce revised India price lists and import allocations against the TRQ
  • Domestic manufacturers (Tata, Mahindra) seek EV incentive and local-content protections
  • Dealers reposition inventory and marketing toward newly affordable UK models
  • Customs/DGFT issue rules-of-origin and TRQ allocation mechanics to importers