Imported Cars from UK to Get 90% Duty Cut – Defender, Range Rover, Jaguar
UK Car Import Duty in India cuts import duty on UK cars by 90%. Jaguar, Defender, and Range Rover to get major price drops under new India UK car import agreement in 2025 India is set to become a more affordable market for British luxury vehicles, as the government slashes UK car import duty in India by up to 90%. This game-changing move under the new India UK car import agreement will drastically reduce the price of models like the Jaguar Land Rover price cut India. With this UK car price drop in India in 2025, buyers can expect massive savings on select imported UK cars, making global icons more accessible than ever before.
How the Duty Cut Works
UK Car Import Duty in India Cut by 90% Under the new accord:
- Import duties fall from 110%+ to 10% on British-made petrol and diesel vehicles capped within a fixed annual quota. A graduated phase-in schedule over 10–15 years is expected.
- The relief applies only to completely built units (CBUs), not locally assembled CKD models. Electric vehicles are not included under this concession framework.
- The reduced duty effectively translates into an approximately 90% tax reduction for affected cars.
Which Cars Will Benefit?
- Land Rover Defender (UK-built CBU): Directly benefits; duty cuts could reduce prices significantly, though not by the “50%” some expect. Realistic savings are around 20–30% unless assembly is localized.
- Range Rover & Range Rover Sport: Already assembled in India (Pune CKD), these models won’t see import duty benefit and remain unaffected pricewise.
- Jaguar models: Many are UK imports and may enjoy Jaguar Land Rover price cut India though exact models depend on the quota and business strategy.
Luxury Brands with Potential Gains
Brands that are poised to benefit under the quota include:
- Jaguar Land Rover (JLR)
- Bentley, Rolls-Royce, Aston Martin
- McLaren, Mini, Norton (motorcycles)
Analysts from Grant Thornton and BNP Paribas predict significant price cuts and improved accessibility for wealthy buyers.
Why Some Models Won’t Change
- CKD models (Range Rover, Evoque, etc.) are taxed at 15% and remain unaffected by tariff cuts.
- The Defender, built in Slovakia, won’t qualify under UK-import concessions unless JLR shifts production to the UK or India.
- Government officials stress that electric vehicles are excluded, retaining current high import duties
Local Assembly vs FTA
- Local CKD operations in Pune already give JLR a price edge. For example, manufacturing the flagship Range Rover locally delivered 18–22% price reductions.
- If JLR begins local assembly of the Defender, further reductions (~20%) are possible—even without the FTA
Quotas & Transitional Boundaries
- Only a limited number of vehicles per year qualify for 10% tariffs under the FTA. No current plans exist to expand the quota
- Safeguards ensure domestic industry stability; the full duty reduction will unfold gradually over 10–15 years
Strategic Implications
- JLR aims to double India’s sales over three years, leveraging the FTA to introduce more imported models and boost retail presence.
- Tata Motors (JLR’s parent) holds a strategic advantage with manufacturing presence in both countries, allowing for cross-border synergy.
- Mercedes and BMW largely unaffected, since 95% of their luxury portfolio is already local CKD
What Customers Should Expect
- Imported UK Range Rover duty cut news CBUs (e.g., Defender, imported Jaguar models) could become 20–40% cheaper, subject to quota availability.
- EVs remain protected, with no special concessions.
- Following initial duty cuts, price reductions will be gradual over years, not immediate steep discounts.
- CKD models will retain existing price levels.
Final Conclusion
The India–UK FTA heralds a new era for luxury car lovers in India, offering potential savings and expanded choice but only for a few imported vehicles under quota restrictions. Expect significant cuts for UK-built models, while locally assembled vehicles remain stable. The path ahead includes a phased rollout, production strategy shifts and some cautious optimism from buyers awaiting relief. More…