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India-UK FTA: Will Rolls-Royce & Bentley Cars Become 50% Cheaper in India?

The India-UK Free Trade Agreement (FTA) is set to revolutionize the luxury car market in India. With import duties expected to drop significantly, premium British brands like Rolls-Royce, Bentley, and McLaren could become almost 50% cheaper. This move not only benefits car enthusiasts but also strengthens economic ties between the two nations.

How the India-UK FTA Will Make British Cars Cheaper
Currently, India imposes high import duties (up to 100-120%) on fully-built foreign luxury cars. The new FTA will drastically reduce these tariffs, leading to:
Massive price cuts – Brands like Rolls-Royce, Bentley, Jaguar, Land Rover, and McLaren will see prices drop by nearly half.
Example: The Rolls-Royce Phantom (currently ₹9.5 crore) may cost around ₹4.75 crore.
The McLaren 750S (₹6 crore) could drop to ₹3 crore.
Boost for luxury car buyers – Indian consumers can now own these high-end vehicles at far more affordable rates.
Growth for British automakers – Easier market access and increased sales in India.

Tufan Erginbilgic, CEO of Rolls-Royce, stated:
“The FTA is a landmark in bilateral cooperation. We look forward to collaborating with Indian partners on aerospace and propulsion technologies, building on 60 years of successful tech transfer.”
Even motorcycle brands like Triumph will benefit, making their premium bikes more accessible in India.

How Indian Automakers Gain from the FTA
While British luxury brands rejoice, Indian car manufacturers also stand to gain:
Tata Motors & Mahindra can expand into the UK and European markets with competitive pricing.
Mahindra’s upcoming EVs (like the BE.05 and XUV.e9) could see stronger European demand.
Maruti Suzuki (already selling the eVitara in the UK) will get a further boost.
Dr. Anish Shah, CEO of Mahindra Group, commented:
“This FTA is a blueprint for innovation-led growth, benefiting green mobility, digital tech, and manufacturing. It strengthens India’s role as a global innovation hub.”
The Automotive Component Manufacturers Association (ACMA) also welcomed the deal, highlighting benefits for Indian MSMEs in auto parts, EV tech, and R&D collaborations.

Key Q&A on India-UK FTA & Its Impact on Cars
1. Which British car brands will become cheaper in India?
Rolls-Royce, Bentley, Jaguar, Land Rover, and McLaren will see price drops of nearly 50%.
2. How much will a Rolls-Royce Phantom cost after the FTA?
Currently priced at ₹9.5 crore, it may drop to around ₹4.75 crore (ex-showroom).
3. Will Indian car companies benefit from this deal?
Yes, Tata Motors, Mahindra, and Maruti Suzuki can expand exports to the UK with reduced tariffs.
4. What about electric vehicles (EVs) under this FTA?
EVs like Mahindra’s BE.05 and Tata’s Harrier EV could gain easier access to European markets.
5. How does this FTA impact India’s economy?
It boosts trade, creates jobs, and strengthens India-UK ties in tech, defense, and green energy sectors.