DGFT Approves Import of 642 UK Cars Under India-UK FTA Quota

Key facts

• The Directorate General of Foreign Trade (DGFT) approved applications from seven companies to import 642 cars from the UK for the remainder of 2026 under the tariff rate quota (TRQ) provisions of the India-UK free trade agreement, having received applications from eight companies.
• Only original equipment manufacturers (OEMs), dealers, and channel partners duly authorised by UK OEMs were eligible to apply for the TRQ.
• Under the India-UK Comprehensive Economic and Trade Agreement (CETA), effective July 15, India will allow import of 3.78 lakh conventional-engine passenger cars from the UK at concessional customs duty over the first 15 years.
• Tariffs on automotive imports will fall from around 110 per cent to 10 per cent, with duties on standard petrol and diesel cars initially dropping to 30–50 per cent before reaching 10 per cent by the fifth year.
• Annual TRQ caps start at 20,000 units in the first year and rise to 37,000 units by year five, within the overall 15-year ceiling of 3.78 lakh vehicles.
• DGFT had invited applications in July for the 2026 import quota of about 5,000 units for fully-built passenger cars and goods vehicles, with uptake in the first round well below the ceiling.