Under the India-UK FTA, made-in-India electric/hybrid/hydrogen passenger cars will be permitted to enter the UK free of customs duty from the 6th year in different price brackets at specified quotas for each segment.

Domestic automakers Maruti Suzuki, Mahindra & Mahindra and Tata Motors Passenger Vehicles are looking to tap opportunities in the electric car segment in the UK, as India's free trade pact with the country will allow duty-free exports for specified price segments under a quota system.

As per the India-UK CETA document, released last week, India will get access to the UK's electric, hybrid/hydrogen passenger cars segment, with duty-free exports to that country from the sixth year in the price segment ranging from under GBP 20,000 to 80,000, with the total quota reaching a peak of 88,000 units from the 15th year and continuing in the subsequent years.

The free trade agreement (FTA) between the two countries, which is expected to help double two-way commerce to $100 billion by 2030, will come into force on July 15.

"The India-UK FTA is a positive development that could create new opportunities for India-manufactured electric vehicles," M&M Ltd President, Automotive Business, Velusamy R told PTI in response to a query.

On M&M's plans to tap the EV segment in the UK, he said, "As we have indicated earlier, the UK is one of the right-hand-drive markets... (and) we will evaluate as part of a calibrated global expansion of our electric SUV portfolio. We will study the details of the agreement and the market opportunity, before taking an appropriate decision".

Expressing similar optimism, Maruti Suzuki Senior Executive Officer, Corporate Affairs, Rahul Bharti said, "We believe India has the competitiveness to welcome liberalisation and use it for export opportunities, and we thank the government for this FTA with the UK".

He further said, "We have already started exporting eVITARA to Europe, with about 36,000 units already exported within nine months of the launch, and the UK being the top market. Therefore, we believe this FTA will be positive for 'Make in India for the world'."

Terming the India-UK FTA a positive step towards deepening bilateral trade and advancing sustainable mobility, a Tata Motors Passenger Vehicles spokesperson said, "The phased, quota-based framework creates a calibrated pathway by opening new export opportunities for Indian-made EVs in the UK while supporting long-term competitiveness of the domestic industry".

Under the India-UK FTA, made-in-India electric/hybrid/hydrogen passenger cars will be permitted to enter the UK free of customs duty from the 6th year in different price brackets -- under GBP 20,000; 20,000 GBP to 40,000 GBP and above 40,000 GBP to 80,000 GBP -- at specified quotas for each segment.

However, India made electric/hybrid/hydrogen passenger cars priced above 80,000 GBP are excluded from any duty concessions under the FTA.

In the 6th year, 6,800 units each will be allowed in the 'under GBP 20,000' and '20,000 GBP to 40,000 GBP' segments, while the quota for the 'above 40,000 GBP to 80,000 GBP' price bracket is 4,000 units, totalling 17,600 units across the segments.

The total quota will reach a peak of 88,000 units from the 15th year and will remain there in the subsequent years.

In the 'under GBP 20,000' and '20,000 GBP to 40,000 GBP' segment, the quota in the 15th year and subsequent years will be 34,000 units each, while the same for the 'above 40,000 GBP to 80,000 GBP' category will be 20,000 units, as per the India-UK CETA document.

Published on June 21, 2026