India has notified the framework for concessional-duty imports of UK-made vehicles under the India-UK CETA
July 10, 2026: India has issued the operational framework for concessional-duty imports of passenger and goods vehicles from the United Kingdom under the India-UK Comprehensive Economic and Trade Agreement (CETA), which comes into effect on July 15. The Directorate General of Foreign Trade (DGFT) has announced that only Original Equipment Manufacturers (OEMs) and their authorised dealers or channel partners will be eligible to apply for Tariff Rate Quotas (TRQs). Importers must submit a pre-purchase agreement from a UK-based manufacturer and a valid Certificate of Origin. TRQ certificates will remain valid for up to 12 months or until the end of the calendar year, with allocations ending once the annual quota is exhausted.
Under the agreement, India will gradually reduce customs duties on eligible UK-built vehicles under a quota system. In the first year, 20,000 passenger cars will be allowed at concessional rates. Premium petrol and diesel vehicles will attract a reduced duty of 30 per cent instead of 110 per cent, while mid-size and mass-market petrol and diesel cars will see duties fall to 50 per cent. The quota for conventional passenger vehicles will increase over the next five years, with customs duties eventually dropping to 10 per cent for eligible imports.
Electric, hybrid and hydrogen-powered passenger vehicles will not receive immediate duty concessions. From the sixth year onwards, limited quotas will be available for premium alternative-fuel vehicles, while electric vehicles priced below GBP 40,000 will remain outside the concession framework to protect India’s domestic EV industry. The government said the new rules are designed to balance consumer access to imported vehicles while supporting local manufacturers and ensuring the benefits of reduced customs duties reach buyers.