DGFT Opens Tariff-Rate Quota Window for UK Car Imports Under India-UK FTA
India's DGFT has invited auto importers to apply for a Tariff-Rate Quota covering 3.78 lakh UK-made vehicles over 15 years, slashing import duty from 110% to 10%. Applications close Aug. 4, with quota licenses valid for 12 months—potentially lowering prices for OEMs, dealers and consumers.
What happened
DGFT opens Tariff-Rate Quota applications for UK auto imports under India-UK FTA, cutting duties to 10% from 110%, benefiting OEMs, dealers, and consumers via
Key facts
- 3.78 lakh units
- 10% duty from 110%
- Aug. 4 deadline
- 15 years
- 12 months validity
Why this matters
This TRQ window creates a strategic case for evaluating partnerships or distribution deals with UK automakers ahead of the Aug. 4 application deadline, as early quota allocation could lock in competitive advantage.
What to watch
- DGFT quota allocation results (expected shortly after Aug 4 deadline)
- First wave of UK-brand price cut announcements in India
- EU-India FTA auto tariff chapter progress/statements
- SIAM (auto industry body) response or lobbying on TRQ terms
- Quota utilization rate reported at 6/12-month mark
- Track DGFT's post-Aug 4 allocation list for concentration among JLR, Bentley, Aston Martin, Rolls-Royce dealers/importers
- Watch Tata Motors and JLR India pricing announcements for Q3 FY26
- Monitor German OEM (Mercedes-Benz India, BMW India) public statements on FTA parity
- Check GBP/INR trend—weak pound amplifies duty-cut savings
- Flag any secondary market/license transfer mechanisms enabling quota arbitrage