The impact of the Free Trade Agreement between India and the United Kingdom (India-UK FTA) has become evident in the luxury car market. The British company Aston Martin has announced a significant price reduction on several of its models in India, with some models becoming cheaper by more than 40 million rupees.
The company has adjusted prices for the Vantage, DB12, DBX, and Vanquish lineups. Aston Martin attributes this decision to the easing of import duties following the entry into force of the India-UK FTA. The company aims to pass this discount directly to its customers, joining a number of British luxury car manufacturers that have begun offering FTA benefits directly to buyers.
The most substantial price reduction affected Aston Martin's most expensive model, the Vanquish Volante. Its price was reduced from 10.92 crore rupees to 6.90 crore rupees, representing a direct saving of 4.02 crore rupees. Additionally, the price of the Vanquish Coupe decreased by 3.71 crore rupees. Reductions were also recorded for the DBX S by 2.65 crore rupees and the DB12 S by 2.64 crore rupees, providing significant savings for buyers.
In the segment of more affordable sports cars, such as the Vantage S, the new price is set at 3.15 crore rupees, which is a decrease of 1.84 crore rupees. The Vantage S Roadster will now cost 3.35 crore rupees, an reduction of 1.91 crore rupees.
Following the introduction of the India-UK FTA, other British luxury car manufacturers have also changed their pricing policies. Jaguar Land Rover first lowered prices on the Range Rover SV and Range Rover Sport SV. McLaren subsequently made its 750S series more affordable. Bentley has also started taking orders for the Bentayga at new prices, while new prices for its other models are expected.
Experts believe that this agreement will intensify competition among British luxury car manufacturers. Previously, these vehicles had a very high cost due to high import duties, but now their price will significantly decrease thanks to this deal.
The India-UK FTA is a trade agreement between India and the United Kingdom aimed at simplifying and reducing trade between the two countries. Under this agreement, customs duties on many goods have been reduced or will be gradually reduced, benefiting companies and consumers in both countries.
This agreement has the greatest impact on the market of luxury cars imported from the UK into India. The reduction in import duties allows British companies such as Aston Martin, Jaguar Land Rover, McLaren, and Bentley to lower the prices of their cars, making them more accessible to Indian consumers. After the deal comes into effect, the customs duty on Completely Built Units (CBU) cars manufactured in the UK will drop from 110% to 30%. However, this benefit in the first year will only apply to a quota of 20,000 imported vehicles.
