Indian automakers make unprecedented proposal on imports as part of UK trade deal: report

• Shubham
• 07 October, 2022

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By: Shubham Ghosh

Car-makers in India have proposed slashing to 30 per cent the tax rate on imported vehicles as part of a trade deal with the UK, Reuters reported citing sources, and the move is deemed to be an unprecedented one that could ease access to one of the protected automobile markets in the world.

It is the first time that car-manufacturers in India have backed such reduction, caving to pressure from a government which is in favour of them giving up their protectionist stance and lower entry barriers, informed sources said.

Import taxes from 60-100 per cent in India, the world’s fourth-largest car market, rank among the highest across the world, inviting criticism from companies such as Tesla Inc that shelved entry plans because of the high tariffs.

Society of Indian Automobile Manufacturers (SIAM), a lobby group, has written to the government backing phased cuts to 30 per cent over a period of five years, following a grace period of five years with none, three sources told Reuters on the condition of anonymity.

It was, however, not immediately clear if India had presented the same offer to the UK in their trade talks that are due to conclude soon, with the signing of a final agreement expected by the end of October.