The recently concluded India-UK Free Trade Agreement (FTA) is expected to significantly boost Jaguar Land Rover’s (JLR) performance in the Indian market by enabling quicker access to globally priced vehicles, Tata Motors Group Chief Financial Officer PB Balaji said on Tuesday.
Speaking during an earnings call, Balaji described the agreement as a positive development for JLR’s future offerings in India. “Customers will be able to access global cars and global prices much faster because of this FTA,” he said, adding that it would help sustain JLR’s growth trajectory in the country.
Under the agreement, tariffs on automotive imports between the two nations will be reduced from over 100% to 10%, subject to bilateral quotas. This change is anticipated to benefit premium carmakers such as Tata-owned JLR. However, Balaji clarified that the FTA will not affect JLR’s existing India-assembled models, including the Range Rover, Range Rover Sport, Evoque, and Velar, which are already produced locally using the Completely Knocked Down (CKD) approach.
The deal also includes a limited duty-free quota for electric vehicles (EVs), covering only a few thousand units, indicating a measured approach to EV market liberalization.
Commenting on the recently announced US-UK agreement that lowers tariffs on UK auto exports to the United States from 27.5% to 10% (within a quota of 100,000 units), Balaji welcomed the move but emphasized the need for further clarification. “Directionally, it is on the right track, but we need to see the fine print, especially around timing, parts and accessories, and whether changes apply retrospectively,” he noted.
He added that it could take about a month to fully assess and quantify the implications of the new tariffs. In the meantime, JLR will continue its focus on cost control and operational efficiency, particularly in the US market.
On the subject of tariffs impacting specific models like the Land Rover Defender—manufactured in Slovakia and currently subject to a 25% US tariff- Balaji acknowledged the challenge but said the company would treat it as part of a broader portfolio strategy. He also expressed hope for a future EU-US trade deal, similar to the UK-US agreement, to further ease trade frictions.
Regarding potential manufacturing expansion in the US, Balaji stated it was too early to make any decisions. “We are in a wait-and-watch mode to understand how the new agreement on tariffs stabilises before taking any call,” he said.
GENERAL | India-UK FTA to Set Car Quota Based on Engine Capacity and Price
