India receives limited TRQ applications from UK for car supply under FTA

Seven UK-based carmakers sought concessional-duty quotas for 642 vehicles after India invited applications for 10,480 units under the bilateral trade agreement for 2026

India has received a limited number of applications for tariff-rate quota (TRQ) from UK-based automobile companies — a window that offers concessional duty for cars under the Free Trade Agreement (FTA), a commerce ministry official said.

“Only 642 cars are likely to be imported into India out of around 10,000 units’ quota applications sought for 2026,” the official said requesting anonymity.

Under the India-UK Comprehensive Economic Trade Agreement (CETA) that came into force on July 15 this year, India has offered phased tariff concessions on cars to the UK under a limited annual quota.

The TRQ limit for the first year is 20,000, as duty falls to 30 per cent from 110 per cent on large-engine vehicles, and to 50 per cent from 66 per cent on mid-range vehicles.

As part of the deal, India will cut import duties on automotive imports from the UK to 10 per cent from a high of 110 per cent, with quotas on both sides.