India-UK Trade Pact: Three weeks to more affordable McLarens and Range Rovers?

With import duties on all things British waiting to face the axe from mid-July as part of the India-UK Free Trade Agreement (FTA), things have seldom looked better for the Indian fan of British cars. That means you’re looking at less than three weeks to go before you can get that racy McLaren or that stately Range Rover SV at what will look like bargain basement prices compared to what you’ve had to pay until now.

While we have done an in-depth story on the details of the India-UK FTA here’s a recap of the main bit of information relevant to petrolheads. What the pact will allow British auto makers to do is import completely-built-units (CBUs) that will be taxed at 10 per cent instead of the old 110 per cent. Of course, the numbers will be limited by a quota system but if the car you want is within that quota then it’s the lottery for you. Like we’ve said before, for consumers this means access to some of the world’s best luxury cars at a more reasonable cost and a broader range of products too.

Brands that will benefit include Aston Martin, Rolls-Royce, Range Rover, Bentley and McLaren. The first to officially reduce prices with the trade pact on the horizon was Jaguar-Land Rover (JLR) as it announced cuts to prices of its Range Rover SV and Range Rover Sport SV. Other makes such as Rolls-Royce and Mini may join the movement, but it will be governed by the seminal condition of cars having been produced in the UK and then imported in India as per the agreed quotas.

At least in its initial stage, EVs and hybrids won’t attract the relaxed tariff rates in the first six years, and vehicles imported beyond the quota will be levied with higher duties. For enthusiasts, though, this could mark one of the biggest shifts in India’s luxury and performance car market and let them finally have the candyland they always desired.

Jaguar Land Rover (JLR)

The first-movers in the India-UK FTA race was JLR. The brand has already announced and reduced the price of Range Rover SV from ₹4.25 crore to ₹3.50 crore, extending a marked benefit of ₹75 lakh to the prospective customers. Similarly, Ranger Rover Sport SV prices have come down by ₹40 lakh, from ₹2.75 crore to ₹2.35 crore (all the revised prices are ex-showroom). Models like the Defender and Discovery are not included in this exercise as those are manufactured in Slovakia, instead of the UK.

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McLaren

Britain’s homegrown supercar and hypercar maker, McLaren has also joined the cause in anticipation of imminent relaxation of tariffs with regards to imports of its models to India. Models like McLaren 750S Coupe stand to get a drop of ₹3 crore, with prices slashed from ₹7.94 crore to ₹4.94 crore. The Spider derivative of the 750S prices are slumped from ₹8.78 crore to ₹5.46 crore, prospective customers benefit by ₹3.32 crore. In the same vein, McLaren GTS gets a relief of up to ₹2.32 crore, price dropped from ₹6.15 crore to 3.83 crore (all the revised prices are ex-showroom).

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Rolls-Royce, Bentley and Aston Martin

While official word from any of these three British marques are still awaited, there is no doubt that all three will benefit from the trade deal that was signed between the Indian government and the British government about a year ago.

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In the first year, this India-UK Free Trade Agreement will only allow the first 10,000 cars for a lower rate of duties. Consequently, by its fifth year of effectiveness, up to 37,000 UK manufactured CBUs can potentially be imported to India at the proposed concessional tariff rates. Life looks promising for enthusiasts of the British way of motoring.