Indian automakers Maruti Suzuki, Mahindra & Mahindra, and Tata Motors are exploring significant export opportunities for locally manufactured electric vehicles to the United Kingdom, thanks to the landmark India-UK Comprehensive Economic and Trade Agreement (CETA).The agreement, which is set to come into force on July 15, 2026, includes provisions that will allow duty-free exports of cleaner passenger vehicles — including electric, hybrid, and hydrogen-powered models — from India to the UK starting from the sixth year onwards. This phased quota-based window is expected to open new avenues for Indian EV manufacturers in the premium European market.
Under the FTA terms, Indian-made EVs priced up to £80,000 will be eligible for zero customs duty in the UK, subject to a quota system. The quota will begin at 17,600 units in the sixth year and gradually scale up to 88,000 units annually from the 15th year onwards. The allocation is divided into three price segments: under £20,000, £20,000–40,000, and £40,000–80,000, providing structured access across different vehicle categories
Maruti Suzuki, with its upcoming EV portfolio including models based on the YMC platform, is well-positioned to target the more affordable segments under £20,000–40,000. Mahindra & Mahindra, known for its rugged and feature-rich electric SUVs like the XUV400 and upcoming models, could leverage the mid-price brackets effectively. Tata Motors, which already has global EV ambitions with models like the Nexon EV, Curvv EV, Harrier EV, and Sierra EV, stands to gain substantially from this duty-free access, especially in the competitive £20,000–40,000 and higher segments.
Industry executives believe the India-UK FTA could serve as a strong boost for India’s EV export strategy. Currently, Indian automakers primarily focus on markets in Europe, the Middle East, and Africa. The UK, being a right-hand drive market like India, offers logistical and regulatory advantages, making it a natural destination for made-in-India EVs.
The duty-free quota is expected to improve the price competitiveness of Indian EVs in the UK, where consumers are increasingly shifting towards electric mobility. It also aligns with India’s broader goal of positioning the country as a global EV manufacturing hub. However, Indian manufacturers will need to meet stringent UK safety, quality, and emissions standards to fully capitalize on this opportunity.
Analysts view this development as a win-win element of the FTA, balancing market access for British luxury vehicles in India with export potential for India’s growing clean mobility sector. As the agreement takes effect, Maruti, Mahindra, and Tata are likely to accelerate their planning for UK-specific variants and homologation processes.
This export window is expected to strengthen India’s automotive exports and support the government’s target of increasing EV penetration and global competitiveness in the coming decade.
