Maruti Suzuki, M&M & Tata Motors eye UK fast lane under trade pact

Domestic carmakers are preparing to accelerate their electric vehicle ambitions in the United Kingdom, buoyed by the opportunities opened up under the India-UK free trade agreement that will allow duty-free exports of locally manufactured EVs under a phased quota system, according to a PTI report.

Automakers including Maruti Suzuki, Mahindra & Mahindra and Tata Motors Passenger Vehicles have welcomed the provisions of the trade pact, viewing it as a gateway for expanding the global footprint of India-made electric vehicles in one of Europe’s key right-hand-drive markets.

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The free trade agreement, formally the India-UK Comprehensive Economic and Trade Agreement, is set to come into force on July 15 and is expected to help double bilateral trade to $100 billion by 2030.

Among its notable provisions is a framework allowing duty-free exports of electric, hybrid and hydrogen-powered passenger vehicles manufactured in India to the UK, beginning from the sixth year of implementation and subject to annual quotas across different price categories.

Carmakers eye UK EV opportunity

Under the agreement, duty-free access will be available for vehicles priced below GBP 20,000, between GBP 20,000 and GBP 40,000, and between GBP 40,000 and GBP 80,000. Vehicles priced above GBP 80,000 will not qualify for tariff concessions.

In the sixth year of the agreement, India will be permitted to export 17,600 vehicles duty-free across the three categories. The quota will gradually rise over the years, reaching 88,000 units from the fifteenth year onwards and remaining at that level subsequently.

Also Read | India-UK FTA more than just about trade: Foreign Secretary Vikram Misri

Mahindra & Mahindra said the pact could open fresh avenues for electric vehicles manufactured in India. Velusamy R, President of the company’s Automotive Business, said the UK remains an important right-hand-drive market and forms part of the company’s broader international expansion strategy for electric SUVs.

“We have indicated earlier that the UK is one of the right-hand-drive markets and we will evaluate it as part of a calibrated global expansion of our electric SUV portfolio,” he told the news agency, adding that the company would study the finer details of the agreement and the market opportunity before taking a decision.

Maruti Suzuki also expressed optimism about the export prospects created by the trade pact.

Rahul Bharti, Senior Executive Officer for Corporate Affairs, said India possessed the competitiveness required to benefit from trade liberalisation and leverage it to expand exports.

The company has already begun exporting its electric SUV eVITARA to Europe and has shipped around 36,000 units within nine months of the model’s launch, with the UK emerging as its largest market.

“We believe this FTA will be positive for the ‘Make in India for the world’ vision,” Bharti said.

Tata Motors Passenger Vehicles described the agreement as an important step towards strengthening bilateral trade ties while promoting sustainable mobility.

The company said the phased and quota-based structure provides a balanced pathway that opens new export opportunities for Indian-made EVs in the UK, while preserving the long-term competitiveness of the domestic automotive industry.

As per the agreement, the largest quotas from the fifteenth year onwards will be allocated to the lower and mid-priced categories, with 34,000 vehicles each permitted in the sub-GBP 20,000 and GBP 20,000-40,000 segments. The higher-priced GBP 40,000-80,000 bracket will have an annual quota of 20,000 vehicles.

For India’s automobile industry, the agreement signals more than just preferential market access. It offers a structured pathway for Indian manufacturers to establish themselves in overseas EV markets at a time when the global transition towards cleaner mobility is gathering pace.