The Free Trade Agreement (FTA) between India and Britain is expected to open new opportunities for Indian automakers in the UK electric vehicle (EV) market. Companies like Maruti Suzuki, Mahindra & Mahindra (M&M) and Tata Motors Passenger Vehicles are assessing the possibilities of exporting electric vehicles to Britain under this agreement. The free trade agreement between the two countries is expected to double bilateral trade to $100 billion by 2030. This agreement will come into effect from July 15. According to the India-UK Comprehensive Economic and Trade Agreement (CETA), India will get the facility of duty-free export of electric, hybrid and hydrogen powered passenger vehicles to the UK market in a phased manner. This arrangement will come into effect from the sixth year of the agreement and will operate under the prescribed quota system.
Britain will become the main market
Mahindra & Mahindra President (Automobile Business) Velusamy R said that this agreement can create new opportunities for electric vehicles manufactured in India. He said that Britain is a right-hand-drive market and the company will study this opportunity as part of the global expansion of its electric SUV portfolio. Maruti Suzuki Senior Executive Officer (Corporate Affairs) Rahul Bharti said that the company has already started exporting its electric SUV e-Vitara to Europe and Britain is one of its key markets.
According to him, this agreement will prove to be a positive step towards Make in India for the World. Tata Motors Passenger Vehicles spokesperson also described this agreement as an important step to strengthen trade relations between India and Britain and promote sustainable transportation. He said that the phased and quota-based system will provide new export opportunities for Indian-made electric vehicles to Britain.
what is the agreement
Under the agreement, Indian electric, hybrid and hydrogen passenger vehicles priced up to £80,000 will get duty-free entry into the UK within the prescribed quota. A total of 17,600 vehicles will be allowed to be exported in the sixth year, while by the 15th year this quota will increase to 88,000 vehicles. However, electric, hybrid and hydrogen passenger vehicles manufactured in India costing more than £80,000 will not get any duty concession under the FTA.
What do experts say?
Experts believe that this agreement can play an important role in increasing the global competitiveness of the Indian automobile industry as well as in including India among the major exporting countries of electric vehicles. According to the CETA document, from the 15th year of the agreement, the quota for duty-free exports in the ‘less than 20,000 pounds’ and ‘20,000-40,000 pounds’ categories will be 34,000-34,000 vehicles per annum, while for the ‘40,000-80,000 pounds’ category the limit has been set at 20,000 vehicles per annum.
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