Jaguar Land Rover (JLR), owned by Tata Motors, welcomed the India-UK Free Trade Agreement (FTA) signed on Thursday, which will slash tariffs on its luxury vehicle imports to India from 110% to 10% under bilateral quotas. The deal, signed during Prime Minister Narendra Modi’s UK visit, enhances market access for JLR’s British-built models, a company spokesperson said.

“We welcome the FTA, which will deliver reduced tariff access to India’s car market for JLR’s luxury vehicles,” the spokesperson stated, highlighting India’s importance as a growth market. Approximately 60% of JLR’s sales in India, including Range Rover, Range Rover Sport, Velar, and Evoque, are locally assembled via the CKD route, attracting lower taxes. However, high-value SV models exported from the UK will benefit from the FTA’s tariff cuts. The Defender, manufactured in Slovakia, remains unaffected.

JLR Chief Commercial Officer Lennard Hoornik noted the agreement removes business obstacles, strengthening JLR’s focus on India. No pricing changes for imported models have been confirmed, a UK-based spokesperson clarified. The FTA, finalized after 14 rounds of talks since January 2022, eliminates duties on 99% of Indian exports to the UK and boosts bilateral trade, which rose to $21.34 billion in 2023-24, with India’s exports up 12.6% to $14.5 billion in 2024-25.

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Posts on X reflect excitement among Indian consumers for potentially more affordable luxury vehicles, though some question the impact on local manufacturing. The pact, signed by Commerce Minister Piyush Goyal and UK Business Secretary Jonathan Reynolds, is projected to add £25.5 billion to trade by 2040, fostering growth for JLR and India’s automotive sector.

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