Is the UK-India trade agreement a good deal for automakers?

On 6 May 2025, following more than three years of talks, the UK and Indian governments finally reached a new Free Trade Agreement (FTA). The published text contained a significant provision for UK-based automakers: India will cut its tariff on “high-end” vehicle imports from 100% to just 10%. The country has been under pressure to act similarly for its other trade partners during the last few months.

This deal arrived a few days ahead of the US-UK trade update President Donald Trump advertised as “historic”. However, this was largely regarded as a damp squib, essentially maintaining the two countries’ trading status quo prior to the US’ implementation of tariffs. Is the UK-India FTA a more substantial prospect for OEMs?

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Originally posted on: https://www.automotiveworld.com/articles/is-the-uk-india-trade-agreement-a-good-deal-for-automakers/