British cars to enter India under preferential customs duties

India's Directorate General of Foreign Trade (DGFT) has authorised seven companies to import 642 vehicles from the UK, marking the first allocation of the 2026 import quota. These shipments will benefit from concessional customs duties under the tariff rate quota provisions of the India-UK trade agreement. The government is currently processing applications for a total quota of approximately 5,000 vehicles for 2026. By lowering the entry barrier through reduced tariffs, this mechanism allows specific importers to bring in British cars at a lower cost than the standard import duty, directly impacting the pricing and availability of these vehicles in the Indian luxury segment.