India Proposes A Concessional Tariff On UK EV Imports
India is making a move to lessen import taxes on certain electric vehicles (EVs) from the UK, aiming to finalise a free trade agreement between the two nations by the end of this year. According to insiders cited by Bloomberg, New Delhi is considering a concessional tariff of 30 per cent on the annual import of 2,500 EVs from the UK (as long as they are priced above 18,000), which is currently the best-selling electric car in India.
Luxury automakers like BMW, Mercedes-Benz, and Audi offer electric cars with prices above 3.1 billion in production-linked incentive programmes to support local EV production. Insiders suggest that a final decision on India's stance on import duties for EVs is yet to be made.
Both India and the UK have already demonstrated flexibility in negotiations, including the reduction of tariffs on British cars and Scotch whisky, as previously reported by Bloomberg. The two countries anticipate that a free trade agreement will double bilateral trade by 2030, driven by lowered tariffs and increased market access. The UK-India pact is also viewed as a significant achievement post-Brexit, serving to bolster India's manufacturing aspirations. India currently imposes a range of import duties on cars, with rates ranging from 15 per cent to 35 per cent for unassembled vehicles imported from overseas.
