Homegrown Carmakers Maruti, Tata Motors and M&M Explore UK EV Export Opportunities Under New Trade Pact

Homegrown carmakers Maruti Suzuki, Mahindra & Mahindra (M&M) and Tata Motors Passenger Vehicles are assessing the potential to expand electric vehicle (EV) exports to the UK following provisions in the India-UK free trade agreement that enable duty-free access under a phased quota framework, according to news agency PTI. The agreement, scheduled to take effect on July 15, allows exports of electric, hybrid and hydrogen-powered passenger vehicles without import duty from the sixth year onwards. 

The benefit will be extended across price segments ranging from under £20,000 to £80,000, with quotas set to increase progressively to 88,000 units annually by the 15th year.

Industry executives indicated that the framework could create a fresh export channel for vehicles manufactured in India, particularly in right-hand-drive markets such as the UK.

“The India-UK FTA is a positive development that could create new opportunities for India-manufactured electric vehicles,” Velusamy R, President, Automotive Business, Mahindra & Mahindra, was quoted as saying. 

He added that the company would “evaluate as part of a calibrated global expansion” and study market conditions before proceeding.

The country's biggest carmaker Maruti Suzuki also pointed to the potential upside from the agreement. “We believe India has the competitiveness to welcome liberalisation and use it for export opportunities,” said Rahul Bharti, Senior Executive Officer, Corporate Affairs. 

He noted that the company has already shipped around 36,000 units of its eVITARA model to Europe within nine months of launch, with the UK emerging as a key destination.

Tata Motors Passenger Vehicles said the agreement could support the expansion of sustainable mobility. 

“The phased, quota-based framework creates a calibrated pathway by opening new export opportunities for Indian-made EVs in the UK while supporting long-term competitiveness of the domestic industry,” a company spokesperson said.

Under the terms of the pact, duty concessions will apply to vehicles priced up to £80,000, divided into three bands: below £20,000, £20,000–£40,000, and £40,000–£80,000. Vehicles priced above this threshold will not be eligible for the benefit.

In the sixth year, the total quota will begin at 17,600 units, distributed evenly across the lower price bands with a smaller allocation for higher-priced models. This allocation will expand over time, reaching 88,000 units annually from the 15th year.