UK Seeks Customs Duty Concessions on EV Exports to India

The British automotive industry, known for being export-driven, is exploring diversification beyond its major export destination, Europe.

November 18, 2023. By News Bureau

Amid the ongoing negotiations for a free trade agreement (FTA) between India and the UK, the UK government has formally requested customs duty concessions on the exports of electric vehicles (EVs) to India.

India's rapidly expanding electric vehicle market, projected to reach one crore units in annual sales by 2030, has garnered the attention of global players. The UK, aligning with its commitment to phase out internal combustion engine (ICE) vehicles by 2035, is seeking opportunities in India's flourishing EV market.

The British automotive industry, known for being export-driven, is exploring diversification beyond its major export destination, Europe.

"The UK has sought concessions on electric vehicles from India as part of the ongoing free trade agreement negotiations," an official stated. India's Economic Survey for 2022-23 anticipates the EV market's growth to create five crore direct and indirect jobs.

As part of its strategy to boost the EV sector, the Indian government has introduced fiscal incentives, including production-linked incentives (PLI) schemes for advanced chemistry cell (ACC) battery storage and the auto, auto-components, and drone industries.

These initiatives aim to encourage domestic manufacturing and have attracted global players, with Tesla expressing interest in establishing a manufacturing plant in India.

Tata Motors currently holds a leading position in the Indian passenger electric vehicle market, boasting a portfolio that includes the Nexon EV range, Tiago EV, and Tigor EV.

The FTA negotiations between India and the UK, initiated in January 2022, have faced complexities, leading to the extension of deadlines.

13 rounds of talks have taken place, covering various issues, including a social security pact, automobiles, medical devices, movement of professionals, rules of origin, intellectual property rights (IPRs), and duty concessions on EVs, among others.

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Sustainable Transport

Customs Duty Concessions