These Automobile Companies Stand to Gain from India-UK Free Trade Agreement

The recently concluded Free Trade Agreement (FTA) between India and the United Kingdom is poised to alter the dynamics of the automobile industry, benefitting both British luxury brands and Indian exporters.
By reducing tariffs and easing market access, the FTA offers mutual benefits: British luxury carmakers can tap into India's growing demand for premium vehicles, while Indian manufacturers gain a significant foothold in the UK market.

FTA in a nutshell

India and the United Kingdom have signed a historic agreement aimed at significantly expanding bilateral trade. The pact will eliminate tariffs on 99% of Indian exports, while also easing market access for British products such as automobiles, whisky, and other goods. This move is expected to strengthen commercial ties between the two nations, with the goal of doubling the current trade volumes—estimated at $60 billion—by the year 2030.

Also Read: India-UK Trade Deal: Why Is It 'Historic Milestone' For India? | Republic World

How British carmakers benefit

Under the FTA, India has agreed to significantly slash import duties on a limited number of British-made vehicles—from a steep 100% to a more accessible 10%. This duty cut is expected to benefit high-end UK brands looking to tap into India’s fast-growing luxury car segment.

At the forefront is Jaguar Land Rover (JLR), a subsidiary of Tata Motors, which stands to benefit directly from both its British manufacturing base and its established footprint in India. Other super-luxury brands like Aston Martin, Bentley, Rolls-Royce, McLaren, and Norton Motorcycles are also set to gain from lower import costs, making their models more competitively priced for Indian buyers.

Do Indian brands also benefit?

The agreement also opens up the UK market for Indian car and two-wheeler manufacturers, especially those with global ambitions. For instance, Mahindra & Mahindra (M&M) is gearing up to roll out its new range of electric SUVs, including the BE.05 and XUV.e9, in European markets. The FTA could ease their entry into the UK, enabling the utility vehicle maker to price its vehicles more competitively. 

Another homegrown automaker, Tata Motors, may also leverage the trade deal to export domestically manufactured models, including EVs, to the British market. Meanwhile, Maruti Suzuki, which plans to launch its first EV from the Gujarat plant, could find fresh opportunity in the UK—especially as the country moves towards greener transportation targets.

Which other Indian companies get a boost?

The benefits don’t just end with four-wheelers. India’s leading two-wheeler makers—Royal Enfield, TVS Motor Company, and Bajaj Auto—are expected to gain from tariff relief, which could help strengthen their position in the UK’s competitive motorcycle segment.

A handful of auto component suppliers are also expected to ride the wave. Companies like Motherson Sumi, Endurance Technologies, and Sundram Fasteners, which already have a significant export base, stand to gain from smoother access and potentially higher margins in the UK market.

Key takeaways

The India–UK FTA comes at a time when both countries are seeking to deepen economic ties and reduce dependence on traditional markets. For the auto industry, the agreement provides a fresh growth catalyst—whether it is British marquees entering India with greater ease, or Indian manufacturers expanding their international presence, as per auto industry analysts. Some analysts are of the view that this deal could pave the way for greater collaboration in manufacturing, R&D, connected and autonomous vehicles, and electric mobility.