India-UK Free Trade Agreement: Luxury Cars and Superbikes to Cost Half in India | India vs Nepal Price Comparison
The recently signed Free Trade Agreement (FTA) between India and the United Kingdom could bring a historic transformation to India’s automobile market. This deal will make luxury vehicles accessible not only to millionaires but also to the upper-middle class.
Huge Price Drop in Imported Luxury Cars
Until now, imported vehicles in India faced almost 100% import tax, doubling their prices. Post-FTA, a quota system will impose only 10% tax on a limited number of vehicles.
Estimated Price Reduction:
| Vehicle Model | Old Price (India) | New Estimated Price (India) | New Estimated Price (Nepal) |
|---|---|---|---|
| Rolls Royce Cullinan | ₹120 million | ₹60 million | NPR 150 million + |
| Bentley Bentayga | ₹60 million | ₹30 million | NPR 75 million + |
| McLaren 750S | ₹59.1 million | ₹30 million (estimated) | NPR 70 million + |
Note: Nepal has higher import duties and taxes than India, so price reductions will be less significant there.
Who Will Benefit the Most?
Main beneficiaries will be companies manufacturing in the UK and selling in India or Nepal, such as:
- Jaguar and Land Rover (owned by Tata)
- McLaren (recently launched in India)
- Bentley (premium SUV and sedan maker)
Additional Benefits:
- Promotion of local assembly in India.
- Indian companies like TVS, Royal Enfield, Norton may increase exports to the UK.
Good News for Superbike Enthusiasts
Imported motorcycles are also expected to see significant price drops. Examples include:
| Bike Model | Current Price (India) | Estimated New Price (India) | Estimated New Price (Nepal) |
|---|---|---|---|
| Triumph Rocket 3 Storm | ₹2.249 million | ₹1.2–1.4 million (estimated) | NPR 3–3.2 million |
| Triumph Tiger 1200 | ₹1.939 million | ₹1.1–1.2 million (estimated) | NPR 2.6–2.8 million |
Nepal’s prices will remain high as there is no similar FTA with the UK.
Customers Excited, Dealers Await Clarity
While customers eagerly delay bookings, dealers and companies await government clarity on:
- When the tax cuts will be effective.
- The annual quota limits.
- Whether the concession applies only to CBU (Complete Built Units) or also to CKD (Completely Knocked Down) units.
Summary: What Will Change?
| Change | Previous Situation | After FTA Implementation |
|---|---|---|
| Import Duty | ~100% | ~10% (on limited units) |
| Luxury Car Prices | ₹60–120 million | ₹30–60 million |
| Superbike Prices | ₹2 million + | ₹1–1.4 million |
| Situation in Nepal | No change (No FTA) | Prices remain high |
Final Thoughts:
- This FTA can be a game-changer for India’s automobile market.
- Nepalese prices will stay elevated without a similar agreement.
- If implemented soon, luxury brands like Rolls Royce, McLaren, and Bentley could become more common on Indian roads in coming months.
Want to know more?
- Will these vehicles be available in your city?
- What will be the EMI?
- Which company will reduce prices first?