- Duty-free exports of Indian EVs to the UK begin only from 2031.
- Annual quota starts at 17,600 vehicles before rising to 88,000 units.
- Maruti, Tata and Mahindra are all positioning themselves for the opportunity.
Indian electric vehicle exports to the UK have emerged as one of the most closely watched opportunities under the new India-UK trade deal, but the biggest benefit may still be years away.
The India-UK Comprehensive Economic and Trade Agreement (CETA), which comes into force on July 15, gives Indian-made electric vehicles, hybrids and hydrogen-powered passenger cars a pathway to duty-free access to the UK market. However, the zero-duty benefit does not begin immediately. Instead, it becomes available only from the sixth year of the agreement, meaning the earliest qualifying vehicles could enter the UK duty-free in 2031.
That timeline has effectively created a race among India's leading passenger vehicle makers, including Maruti Suzuki, Tata Motors and Mahindra & Mahindra, to establish themselves in the UK before the quota system comes into play.
Until 2031, Indian-made EVs entering the UK will continue to face the standard UK import duty of 6.5 per cent.
From year six onwards, duty-free access will be available for vehicles priced below £20,000, between £20,000 and £40,000, and between £40,000 and £80,000. Cars priced above £80,000 will not qualify for concessions under the agreement.
The initial quota is relatively modest. In 2031, the UK will allow duty-free imports of 17,600 vehicles across the three price categories. The allocation includes 6,800 vehicles in the sub-£20,000 segment, another 6,800 in the £20,000-£40,000 bracket and 4,000 vehicles in the £40,000-£80,000 category.
The quota gradually expands before reaching 88,000 vehicles annually in year 15, where it remains thereafter.
While that sounds substantial, it represents less than 5 per cent of the UK's annual new car market, which typically records between 1.7 million and 1.9 million registrations each year.
A five-year head start could matter
For Indian manufacturers, the challenge may not be securing duty-free access but ensuring they are ready when it arrives.
Maruti Suzuki already has a foothold. Its eVitara, produced at the company's Gujarat plant, has been exported to the UK and several European markets since 2025. The company says more than 36,000 units have been shipped to Europe within nine months of launch, with the UK emerging as one of its largest markets.
Mahindra has also made its intentions clear. The company has previously identified the UK as a key right-hand-drive market for its electric SUV range, including the BE 6 and XEV 9e. Both vehicles have reportedly been engineered to meet European regulatory standards required for sale in the UK.
Tata Motors may have a different advantage. Through its ownership of Jaguar Land Rover, the company already has experience navigating the UK's regulatory environment and distribution network. Models such as the Nexon EV and Curvv EV are also built in right-hand-drive configurations, making them potential candidates for export.
Velusamy R, president of Mahindra's automotive business, reportedly said the trade agreement could create new opportunities for India-manufactured electric vehicles, adding that the company would study the details before making decisions on future expansion.
Rahul Bharti, senior executive officer for corporate affairs at Maruti Suzuki, reportedly said the agreement supports the company's "Make in India for the world" strategy and noted that the UK has already emerged as a significant market for the eVitara.
Early movers may gain the advantage
The bigger question may be who secures the quota first.
With only 17,600 duty-free slots available when the scheme opens in 2031, competition could become intense if multiple Indian brands are already selling EVs in the UK by then. Industry observers suggest manufacturers that spend the next five years building dealer networks, after-sales support and brand recognition may be best placed to benefit once the quota system begins.
The trade deal may have opened the door to Britain's EV market, but for India's carmakers, the real contest appears to be who gets through it first.
