India-UK FTA: DGFT Clears 642 Cars For Import Under 2026 Vehicle Quota

New Delhi, Sep 17 (KNN) The Directorate General of Foreign Trade (DGFT) has approved applications from seven companies to import 642 passenger cars from the UK for the remainder of 2026 under the tariff rate quota (TRQ) provisions of the India-UK free trade agreement (FTA), an official said on Wednesday.

The approval marks the first allocation under the 2026 vehicle quota after the DGFT invited applications in July for imports of fully built passenger cars and goods vehicles from the UK. The government had sought applications for around 5,000 vehicles for the year.

Seven Companies Get Quota

“The directorate had received applications from eight companies. We have approved applications of seven. Quota has been approved for 642 cars,” the official said, as quoted by PTI.

For the 2026 allocation, only original equipment manufacturers (OEMs), dealers and channel partners authorised by UK-origin vehicle makers were eligible to apply.

Tariffs to Fall Under Trade Pact

The India-UK Comprehensive Economic and Trade Agreement (CETA), which came into force on July 15, provides for concessional customs duties on vehicle imports from Britain subject to specified quotas.

Under the agreement, India has allowed imports of 3.78 lakh conventional-engine passenger cars, including mass-segment vehicles, at concessional customs duties over the first 15 years of the pact.

Automotive import tariffs are set to decline from around 110 per cent to 10 per cent under the agreement, with the TRQ mechanism allowing specified quantities of vehicles to enter at preferential duty rates.

The quota-based concessions are aimed at gradually increasing access for UK-origin vehicles in the Indian market while maintaining specified limits on concessional imports.

(KNN Bureau)