What happened

India has published quota and tariff schedules for importing passenger vehicles from the United Kingdom under the India-U.K. Comprehensive Economic and Trade Agreement (CETA). The agreement is scheduled to come into force on July 15, 2026.

The Directorate General of Foreign Trade notification provides concessional import duties and quota limits for passenger vehicles, including conventional fuel cars and alternative-fuel models.

Key tariff and quota provisions

For completely built units (CBUs) of petrol and diesel passenger cars, India will allow a quota of 20,000 vehicles at concessional import duty rates of 30-50%, depending on vehicle size. The notification says normal duties are roughly 66-110%.

The quota is set to rise to 37,000 cars in year five, when the concessional tariff is expected to settle at 10%. Thereafter, the quota is to step down gradually to 15,000 passenger vehicles by year 15.