Indian passenger vehicle manufacturers, including Maruti Suzuki, Mahindra & Mahindra, and Tata Motors Passenger Vehicles, are evaluating opportunities to expand electric vehicle (EV) exports to the United Kingdom following the signing of the India-UK Comprehensive Economic and Trade Agreement (CETA).
The landmark trade agreement, scheduled to come into effect on July 15, is expected to strengthen India’s position as a global manufacturing hub for clean mobility solutions by providing a phased pathway for duty-free exports of electric, hybrid, and hydrogen-powered passenger vehicles to the UK.
Under the agreement, tariff concessions for Indian-made clean mobility vehicles will become available from the sixth year of implementation through a quota-based mechanism. The benefits will apply to vehicles priced below GBP 80,000 across three segments: under 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 preferential tariff treatment.
The annual export quota for eligible vehicles will begin at 17,600 units in the sixth year and gradually expand to 88,000 units by the fifteenth year, significantly enhancing market access for Indian automakers.
Export Quotas to Rise Over Time
According to the agreement, India will be permitted to export 6,800 vehicles each in the under-GBP 20,000 and GBP 20,000-40,000 categories during the sixth year. An additional quota of 4,000 vehicles will be allocated for the GBP 40,000-80,000 segment, bringing the total annual quota to 17,600 units.
By the fifteenth year, the quota allocation will increase substantially. The two lower-priced categories will each receive annual quotas of 34,000 vehicles, while the GBP 40,000-80,000 segment will be allotted 20,000 units.
Industry observers believe the phased increase will provide manufacturers with sufficient time to scale production, build distribution networks, and establish brand presence in the UK market.
Maruti Suzuki Positioned for Early Advantage
Among Indian manufacturers, Maruti Suzuki appears well-positioned to benefit from the agreement. The company has already begun exporting its flagship electric SUV, the eVITARA, to European markets and has reportedly shipped around 36,000 units within nine months of launch.
The United Kingdom has emerged as one of the key export destinations for the model, placing the automaker in a favourable position to leverage the preferential access framework once the quota system becomes operational.
Mahindra & Mahindra and Tata Motors Passenger Vehicles are also expected to explore opportunities in the UK’s rapidly growing electric mobility market as demand for affordable right-hand-drive EVs continues to rise.
Boost for India’s EV Manufacturing Ambitions
The UK remains one of Europe’s largest right-hand-drive automobile markets, making it a natural destination for vehicles manufactured in India. Industry experts believe the phased duty-free access will improve the competitiveness of Indian-made EVs while supporting the government’s ambition of transforming India into a global hub for electric vehicle production and exports.
Beyond the automotive sector, the India-UK trade pact is expected to deepen economic cooperation between the two countries. Both governments have set a target of doubling bilateral trade to USD 100 billion by 2030, with clean mobility, advanced manufacturing, and technology sectors expected to play a key role in achieving that objective.
