Bentley, Aston Martin, JLR Likely To Get Cheaper As India Readies UK Car Import Quota

British luxury and premium cars could get cheaper in India as the government is expected to issue an order within a week allocating import quotas for UK-made vehicles under the India-UK Comprehensive Economic and Trade Agreement (CETA), as per a report by CNBC-TV18.

The proposed allocation would allow 10,480 UK-origin vehicles to be imported at concessional customs duty during calendar year 2026, the report said.

The move could eventually benefit brands including Bentley, Aston Martin, Jaguar Land Rover (JLR), McLaren and Rolls-Royce.

The quota will be administered through the Tariff Rate Quota (TRQ) mechanism, under which eligible importers can bring in a specified number of vehicles at lower duty rates. Imports exceeding the allotted quota would continue to face the applicable higher customs tariff.

India had opened applications last month for importers seeking to use the preferential tariff arrangement. The Directorate General of Foreign Trade (DGFT) reportedly accepted applications between July 21 and August 4 across 27 tariff items after CETA came into force on July 15, 2026.

For 2026, the quota includes 2,329 completely built units (CBUs) with engines up to 1,500cc, another 2,329 vehicles in the mid-sized engine categories, and 4,658 vehicles with larger engines.

A further 1,164 goods transport vehicles are included, excluding electric and hydrogen-powered models.

Duty Cuts In Phases Over 15 Years

Under the broader trade agreement, India will gradually reduce import duties on a quota-based volume of conventional-engine passenger cars originating in the UK.

Duties on eligible CBUs will progressively decline, eventually reaching 10% from the 15th year of the agreement, as per the report.

In the first year, 20,000 UK-origin ICE passenger cars can enter India at concessional rates across three engine categories. The largest-engine category will attract a 30% duty, while the two other categories will face a 50% duty, the CNBC-TV18 report said.

The agreement also provides for 2,500 CBU commercial vehicles for goods transport in its first year.

Electric, hybrid and hydrogen vehicles priced below £40,000 on a CIF basis will not receive duty concessions during the first five years. Separate quotas for higher-priced vehicles will reportedly begin from the sixth year.

Vehicles seeking preferential treatment will also have to comply with CETA's rules-of-origin requirements, including the submission of an origin declaration establishing their eligibility for lower tariffs.