Read This Before You Bring Home Your New Defender At This Price…

The India-UK Free Trade Agreement (FTA) has been given a green flag, and this would make UK-based cars much more affordable to buyers now. Cars from renowned brands like Jaguar Land Rover, Rolls-Royce, Aston Martin and Bentley will benefit from this move, making desired cars more accessible. 

Here’s a quick look at the impact it could have on the Indian automotive industry: 

A Significant Drop! 

Earlier, there was a 100-percent tariff on fully imported vehicles from the UK, but now that has decreased to just 10-percent. This 90 percent drop will not just make cars more affordable, but also inspire these UK-based automakers to focus more on India, and not just update their current models, but also launch new ones! 

Moreover, quotas will be for imports on both sides, thereby benefiting both the nations. Indian automakers would also tap into the British markets as well as other European countries. 

Who Could Benefit? 

Changes in the tariffs will undoubtedly benefit those buyers who are seeking to own desirable cars from brands like Jaguar Land Rover, Bentley, Aston Martin, and even Mclaren. The reduction in tariffs could potentially save up to crores on high-end luxury cars. With a wider access to some really alluring cars, this move will also probably help us see more British cars on Indian roads. 

The deal will help create many opportunities for labor-intensive industries and sectors such as engines, spare parts, engines and other auto parts. 

Indian automakers like Mahindra and Tata could also benefit from this move, as they could export their cars like the Curvv, BE 6, and XEV 9e to the UK markets and benefit from the sales if they are able to capture the UK markets. It will lead to a greater representation of Indian cars globally. 

Automakers like Toyota who have manufacturing facilities in the UK could also look to import some of their high-end cars directly with the revised tariffs. 

Cars That We Might See More On Indian Roads!

In India, we have plenty of British-based automakers such as Jaguar Land Rover, Aston Martin, Bentley, and Rolls-Royce. Most of the cars from the prestigious car brands are highly desirable  and are seen in great numbers in metro cities, where popular celebrities and industrialists opt for these beauties. 

We believe that cars like the Defender, Range Rover, F-Pace, Cullinan, Mclaren 750S and Bentley Continental could see a drastic decrease in the pricing, and these cars could also become popular on our roads as the affordable pricing will lead to many aspirational car buyers purchasing these beauties. 

JLR currently assembles cars in India, but still imports the special edition models and certain variants. 

ZigSays…

Overall, it is not just a win for the buyers or the automotive companies, but a win for India as whole. Similar agreements with other countries might also follow if this move bears fruit. It opens up many employment opportunities, boosts sales, as well as heightens the aspirations of many to own luxury cars. 

The initiative also gives Indian automakers a platform to launch their exciting new products in a large country like the UK. Affordable pricing of these British cars might also lead to rival brands having to offer competitive pricing for their products to stay relevant and worthy of a fight. 

Let us know what you think about this move in the comments section below.