Indian automakers Maruti Suzuki, Mahindra & Mahindra (M&M), and Tata Motors Passenger Vehicles are evaluating opportunities to expand electric vehicle (EV) exports to the United Kingdom following provisions in the India-UK Free Trade Agreement (FTA) that allow duty-free access under a phased quota system, media sources reported.

The agreement, which is set to come into force on July 15th, permits duty-free exports of electric, hybrid, and hydrogen-powered passenger vehicles from the sixth year onwards across price bands ranging from under GBP 20,000 to GBP 80,000 (US$ 26,440-105,760). The quota will gradually increase to 88,000 units annually from the 15th year.

Industry executives stated that the agreement could provide an additional export opportunity for India-manufactured EVs, particularly in right-hand-drive markets such as the UK.

"The India-UK FTA is a positive development that could create new opportunities for India-manufactured electric vehicles," said Velusamy R, President, Automotive Business, M&M. He further added that the company would "evaluate as part of a calibrated global expansion" and study the market before making a decision.

Maruti Suzuki stated that the agreement could support export opportunities. "We believe India has the competitiveness to welcome liberalisation and use it for export opportunities," said Rahul Bharti, Senior Executive Officer, Corporate Affairs. He noted that the company has already exported around 36,000 units of its e Vitara model to Europe within nine months of its launch, with the UK accounting for a portion of demand.

Tata Motors Passenger Vehicles stated that the agreement could support exports of electric vehicles. "The phased, quota-based framework creates a calibrated pathway by opening new export opportunities for Indian-made EVs in the UK while supporting the long-term competitiveness of the domestic industry," a company spokesperson said.

Boost to bilateral trade

Under the agreement, duty concessions will apply to vehicles priced up to GBP 80,000, divided into three categories: under GBP 20,000, GBP 20,000-GBP 40,000, and GBP 40,000-GBP 80,000. Higher-priced vehicles will not qualify for duty benefits.

In the sixth year, total quotas will begin at 17,600 units, split evenly between the two lower price bands, with a smaller allocation for higher-priced models. These quotas will expand steadily, reaching 88,000 units annually from the 15th year onwards. The FTA is expected to increase bilateral trade between India and the UK, with both countries targeting US$ 100 billion in two-way commerce by 2030.