India-UK FTA slashes luxury car duty to 30% from 110%; prices may fall Rs 1-3 crore

Effective July 15, the India-UK FTA cuts customs duty on UK-made luxury cars to 30% from 110% under a 20,000-unit year-one quota. JLR, Rolls-Royce and Aston Martin dealers expect 20-25% price cuts and a jump in imported share from 3-4% to 7-10%.

— Filed Sat, 11 Jul, 2026, 05:43 IST · Source ET Small Business · Updated

India-UK FTA cuts customs duty on UK-made luxury cars to 30% from 110% effective July 15, potentially lowering prices by Rs 1-3 crore and doubling high-end car sales, per JLR, Rolls-Royce and Aston Martin India dealers.

Why this matters

The FTA duty cut follows JLR, McLaren and MINI already trimming British-built prices ahead of CETA, and comes as JLR Q1 retail sales fell 15.3% on supply and Middle East pressures.

Retail-brand signals accelerating at +281800% QoQ.

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