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The India-UK Free Trade Agreement (FTA) is set to have a significant impact on the automotive sector, particularly for luxury British cars and motorcycles. With the reduction of import duties as a key component of the agreement, renowned British automakers like Bentley, Rolls-Royce, Triumph, and Jaguar are poised to see a decrease in costs, making their vehicles more affordable for Indian consumers. Currently, high import tariffs often make luxury models prohibitively expensive in India, but the new FTA aims to address this barrier. As a result, Indian buyers can expect to access a broader range of premium vehicles at more competitive prices. This agreement not only promises to boost sales for British brands but also reflects the growing economic collaboration between the two nations, potentially fostering a stronger trade relationship and encouraging future investment in India’s automotive industry.<h2>India-UK Free Trade Agreement: How It Impacts the Indian Automotive Market</h2>Currently, India imposes import duties of over 100% on certain passenger vehicles, but under the forthcoming India-UK Free Trade Agreement (FTA), these tariffs on British cars and SUVs are set to be significantly reduced. The new agreement will lower the duties to just 10%, though the reduced rate will apply only to a specified quota of imports, as stated by the UK Department for Business and Trade.Also Read:&nbsp;<a href="https://www.autox.com/news/industry-news/stellantis-india-rejigs-leadership-roles-ahead-of-leapmotor-debut-120620/">Stellantis India Rejigs Leadership Roles Ahead of Leapmotor Debut</a> An official statement from the Indian Government reveals that the FTA will eliminate tariffs on approximately 99% of trade lines, encompassing nearly the entire trade value. This is expected to unlock significant potential for enhanced trade between the two countries. While the specifics of the import quota remain unclear, it is anticipated that the lower tariffs will apply to a limited number of UK-manufactured vehicles. Nonetheless, this will result in a dramatic reduction of over 90% in the import duties on British vehicles entering India, which should lead to a significant decrease in their prices.
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 Several luxury automobile brands, including&nbsp;Rolls-Royce,&nbsp;Jaguar Land Rover (JLR),&nbsp;Bentley, Mini, and Aston Martin, already have a presence in India. Many of these vehicles are imported as completely-built-up (CBU) units, which typically come with steep price tags. JLR assembles some models, like the Range Rover, locally, but still imports select variants and limited editions. The FTA is also likely to benefit two-wheeler manufacturers such as Triumph and Norton.Also Read:&nbsp;<a href="https://www.autox.com/news/industry-news/audi-cars-to-get-costlier-in-india-by-up-to-2-from-may-15-120611/">Audi Cars to Get Costlier in India by Up to 2% From May 15</a> The Indian government further highlighted in its press release that the FTA will positively affect the manufacturing sector, particularly in industries requiring significant labour and technological input. It is expected to create new export opportunities for India’s automotive sector, particularly in the production of auto components and engines.

India-UK Free Trade Agreement to Slash Import Duties on Luxury British Cars and Bikes

An Indian government statement reveals the FTA will remove tariffs on 99% of trade lines, covering almost the entire trade value.

In a speech delivered on the net zero target during a press conference at the Downing Street Briefing Room, Central London, Britain's Prime Minister Rishi Sunak announced that the government will push back the ban on the sale of new petrol- and diesel-powered vehicles in the UK from 2030 to 2035. This means that the British people can buy internal combustion engine cars and vans until 2035. However, PM expects that 'the vast majority' of models will use an electric powertrain setup. It is important to note that this ban, which was due to come into force in 2030, applies only to new cars. As for existing cars (both petrol and diesel), people would 'still be able to buy and sell them second-hand' after 2035. This decision is in alignment with the approach followed by other countries, such as Germany, France, Spain, Australia, Canada, and some US states, including California, New York, etc.

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<h2>Still Committed to Net Zero by 2050, said PM Sunak</h2>

The delay on the ban of ICE models is part of key changes in 'green' policies that were announced by Rishi Sunak at the press meet, although he is still committed to reducing the UK's emissions of greenhouse gases to net zero by 2050. In his statement, he said, ‘I’m confident that we can adopt a more pragmatic, proportionate, and realistic approach to meeting Net Zero that eases the burdens on working people.

‘We’re working hard to make the UK a world leader. I’m proud that we’ve already attracted billions of new investments from companies like Tata’s Jaguar Land Rover gigafactory. And I expect that by 2030, the vast majority of cars sold will be electric. Why? Because the costs are reducing; the range is improving; and the charging infrastructure is growing.’

<h2>Climate Change Committee Report</h2>

U.K. greenhouse gas emissions have fallen by 46 per cent as compared to what they were in 1990, owing to the reduction in the use of coal for electricity generation and growth of the renewable power sector, according to the Climate Change Committee (CCC), the UK's independent advisor on tackling climate change. The government has promised to reduce emissions by 68 per cent of 1990 levels by 2030 and to reach the net zero target by 2050.

<h2>UK Delays Ban on ICE Models: Mixed Reactions</h2>

The PM also emphasised the need to allow more time to facilitate a smooth transition to electric vehicles, while leaving the choice to the people. He stated, ‘I also think that at least for now, it should be you the consumer that makes that choice, not the government forcing you to do it. Because the upfront cost is still high, especially for families struggling with the cost of living.

‘And we’ve got further to go to get that charging infrastructure truly nationwide. And we need to strengthen our own auto industry, so we aren’t reliant on heavily subsidised, carbon-intensive imports, from countries like China. So, to give us more time to prepare, I’m announcing today that we’re going to ease the transition to electric vehicles.’

All this attracted mixed reactions from green groups, political parties, and the auto industry, with some welcoming the change, while others expressing frustration. The British manufacturer Jaguar Land Rover welcomed the move by calling it 'pragmatic' and adding that it will bring the nation in line with others.

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Meanwhile, Lisa Brankin, Ford UK Chair, said, ‘Our business needs three things from the UK government: ambition, commitment and consistency. A relaxation of 2030 would undermine all three.’

<a href="https://twitter.com/RishiSunak/status/1681709052273754123">Source</a>

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UK Pushes Back its EV Transition Plans, New Petrol and Diesel Cars to be Sold Until 2035

PM Rishi Sunak has announced the postponement of the ban on the sale of new petrol- and diesel-powered vehicles in the UK from 2030 to 2035. With this move, the British people will be able to buy internal combustion-engined cars and vans until 2035.

With Brexit just around the corner, Jared talks about the implications it has already created in the UK's auto sector and what will happen in the future. With the deadline fast approaching governments need to make a decision fast. &nbsp;

Brexit could very well be the title for a British sitcom. The more you try and follow it, the more you begin to see how politicians have no clue on how to negotiate, and their bickering, indecisiveness and divided opinions are mind blowing. It seems that democracy is no longer working in the modern world. The US has a clown for a president, the Brazilians have a demon possessed leader and, well, Great Britain has a House of Commons who do absolutely nothing for the commoners who elected them.

While the EU and the UK still try and negotiate a deal for Brexit, it seems that they are still nowhere close to reaching an agreement. Auto companies are bearing a huge brunt to their business of this sad comedy of politics. Jaguar Land Rover just issued a statement confirming that they will temporarily cease production from 8th to 12th April due to potential Brexit disruptions. Keep in mind JLR have already made production cutbacks at its factories in Castle Bromwich and Solihull. They are not the only auto maker to make this announcement though, as Japanese car makers Honda and Toyota have already announced a similar arrangement. JLR’s stoppage will affect its three UK factories, however its operations in Brazil, China and India will be unaffected.

But, stopping production momentarily is the least of automakers concerns, because there are more troubles that will affect them. Ford, for example, has stated that they are already incurring huge financial costs. The American manufacturer has said that a no-deal Brexit will cost them $1 billion (Rs 7,100 crore). It all will depend on the current negotiations being handled by Prime Minister May along with the British Parliament and the EU Parliament.

No matter what happens the UK will exit the EU in March, so if a deal is not made by then, there will be plenty of panic. Ford though, has said it’s taking measures to prepare for the worst. Ford is currently the best-selling car company in the UK, and they are hoping that a no-deal is the least likely outcome. One in three cars built at the company's European base in Cologne ends up in the UK, while the American brand also has a pair of engine manufacturing operations in Britain as well, so they have good reason to be worried. Ford also employs 13,000 people, and it looks as if many of them will be losing their jobs as Ford is looking to cut costs.

Along with Ford, JLR has also been cutting jobs, so it looks like the very same people who voted for a Brexit will be feeling the negative effects. The biggest concern though for all industries as well as consumers is whether or not the UK will still be able to continue trade free of customs and tariffs. Everyone hopes that the UK will still be a part of the customs union and that is where most of the negotiations have been around.

Because of this uncertainty, Nissan has decided not to manufacture their X-Trail SUV at its British factory. Car exports are a major business for the UK. Almost 80 percent of the 1.7 million cars that annually roll off production lines in the UK from manufacturers like Nissan, JLR, BMW, Honda, Toyota and many other Britain-based car makers are destined for export. &nbsp;Automobiles make up about one-eighth of all Britain's goods exports and just over half of them are sold in the EU.

When it comes to the auto components for these cars, only 44 percent are sourced domestically. From the international market 80 percent of the components come from the EU. This means a no-deal Brexit and the prospect of tariffs and customs would severely disrupt business on a daily basis.

Now, with many automakers slashing investment into the UK it looks like tougher times are just around the corner. It’s only a matter of time before the government makes a decision, and even if it doesn’t, the UK’s fate with the EU is already sealed, and it will be an uphill battle from March onwards.

The Brexit Effect

With Brexit just around the corner, Jared talks about the implications it has already created in the UK's auto sector and what will happen in the future. With the deadline fast approaching governments need to make a decision fast.

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India-UK Free Trade Agreement to Slash Import Duties on Luxury British Cars and Bikes

UK Pushes Back its EV Transition Plans, New Petrol and Diesel Cars to be Sold Until 2035

The Brexit Effect

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