Consumers of premium cars and SUVs likely to benefit from India-UK FTA
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New Delhi: Consumers of premium cars and SUVs are likely to benefit from the India-UK FTA with New Delhi set to cut import duties on a specified volume of vehicles.As per a statement issued by the UK government, high-end cars made in the country "will benefit from a drop (in import duties) from over 100% to 10% under a quota".It is not immediately clear if the reduced levies will apply on certain categories of vehicles or those in a determined price range. Details are also awaited on the quantum of vehicles that the Indian government will allow for imports under concessional tariffs.Tata Motors-owned Jaguar Land Rover has manufacturing plants in the UK. Tata Motors did not comment on the FTA.Auto parts makers in India, industry experts said, should be able to enhance exports to the UK as they will be granted duty-free exemption."This deal should really help our auto component makers sell more in the UK. At the same time, Indian consumers might be able to buy premium cars at the right price point as soon as they are launched globally," said Saurabh Agarwal, partner & automotive tax leader, EY India. "It probably won't shake up our Indian car manufacturers too much because most Indian consumers still prefer the more affordable options."Industry body Automotive Component Manufacturers Association (ACMA) said while it is yet to examine details of the agreement, it expects expanded opportunities, stronger collaborations, and improved market access.Shradha Suri Marwah, president, ACMA said, "The Indian auto component industry looks forward to enhanced co-operation, technology partnerships and market access through this milestone agreement."
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