The recently concluded Free Trade Agreement (FTA) between India and the United Kingdom is set to significantly boost India’s automotive industry by expanding export opportunities, attracting new investments, and enhancing technological cooperation. With tariff barriers easing and deeper supply chain integration on the horizon, Indian automakers are positioning themselves to strengthen their presence in the UK and broader European markets.
According to the Indian government, the FTA will eliminate tariffs on approximately 99% of tariff lines, covering nearly the entire trade value between the two nations. This move is expected to unlock considerable opportunities for key Indian export sectors, including engineering goods, auto components, and organic chemicals.
From the UK side, automotive import duties in India will be reduced from over 100% to 10% within set quotas. In 2024, India’s imports from the UK included ₹650 crore worth of motor cars, ₹30 crore in motorcycles, and ₹1,150 crore in auto parts. Jaguar Land Rover (JLR) alone accounted for over ₹500 crore in passenger vehicle imports. On the export front, India shipped tractors worth ₹70 crore, motorcycles worth ₹50 crore, and auto parts worth ₹1,590 crore to the UK.
Indian automotive leaders are already capitalizing on the opportunity. Mahindra & Mahindra plans to export its born-electric vehicles, the BE 6 and XUV 9e, to right-hand-drive markets like the UK before expanding to left-hand-drive regions. These next-generation EVs are expected to benefit from the tariff reductions outlined in the agreement.
Mahindra’s Executive Director and CEO of the Auto and Farm Sectors, Rajesh Jejurikar, stated that the EVs are globally designed and strategically positioned for phased international rollout. “In the EV world, you don’t have to be a brand for 30 years for consumers to accept you,” he said, highlighting the evolving dynamics of the global electric vehicle market.
Meanwhile, TVS Motor Company is shifting high-end manufacturing of its British motorcycle brand Norton to its Hosur plant in Tamil Nadu. TVS Managing Director Sudarshan Venu praised the FTA for enabling Indian companies to scale globally. “Our British brand Norton will launch later this year, and this agreement will help us scale faster and leverage common supply chains,” he said.
Further advancing India’s integration with the UK automotive sector, Tata Motors-owned JLR is setting up a new facility in Ranipet, Tamil Nadu. The plant will be a strategic hub for future India-UK supply initiatives and the co-development of models for both domestic and international markets.
The government reiterated that the agreement offers full market access across all sectors and supports India’s growing role in global value chains. As the auto industry shifts toward electrification and sustainability, India’s cost-efficient manufacturing and skilled workforce position it as a global hub for innovation in electric mobility.
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