India opens 2027 tariff-quota applications for UK vehicle imports

India has opened applications for 2027 tariff-rate quotas on UK-built cars and goods vehicles, with a November 21 deadline to claim the 10% in-quota duty.

By Procupy News DeskPublished 7 Nov 2026, 5:43 AM IST2 min readSource: BusinessLine

In 60 words

India's trade directorate opened applications on November 6 for 2027 tariff-rate quotas covering 24,500 UK-built cars and 2,750 transport vehicles. Importers have until November 21 to apply. Vehicles inside the quota pay a reduced 10% duty; the pre-deal rate was described as up to 110%. Only manufacturer-authorised sellers may apply. The car quota is split by engine capacity.

Key points

India's DGFT opened applications on November 6 for calendar 2027 tariff-rate quotas on UK-origin vehicles, with a November 21 deadline^1, 2.
The quota covers 24,500 passenger cars, split into three engine-size bands, and 2,750 goods vehicles, all as finished imports³.
Vehicles inside the quota pay 10% duty, against a pre-deal tariff the UK government described as up to 110%³.
In September, seven companies won approval to import 642 cars for the rest of 2026^1, 2.

India's Directorate General of Foreign Trade (DGFT) opened applications on November 6 for tariff-rate quotas on UK-origin vehicles for calendar 2027, with a November 21 deadline^3, 1, 2. A tariff-rate quota allows a set quantity of imports at a lower duty rate; the DGFT notice covers vehicles brought in at reduced duties^3, 1.

What the quota covers

The 2027 allocation is 24,500 passenger cars and 2,750 transport vehicles, all imported as completely built units (CBUs), meaning finished vehicles rather than kits^3, 1, 2.

The car quota is split by engine size. Engines up to 1500 cc get 6,000 units. Petrol engines of 1500 cc to 3000 cc, and diesel engines of 1500 cc to 2500 cc, get another 6,000. Larger engines get 12,500³.

The transport vehicle quota covers motor vehicles for the transport of goods and excludes electric or hydrogen fuel vehicles³. For passenger cars, only vehicles that have not been registered anywhere before import qualify³.

The duty gap

The quota cuts customs duty on eligible cars to 10%. The UK government describes the arrangement as a "quota that reduces tariffs from up to 110 per cent to 10 per cent"³. It says the quota "starts with internal combustion engine (ICE) cars but transitions to electric vehicles (EVs) and hybrid" as UK manufacturing changes³.

India's concession covers 378,000 conventional-engine passenger cars over the first 15 years of the agreement². The CETA was signed in July 2025 and took effect on July 15, 2026^3, 4.

Who can apply

Only original equipment manufacturers (OEMs), dealers and channel partners authorised by the manufacturers of vehicles originating in the UK can apply^1, 2.

Origin evidence is central. Under the agreement, goods must be wholly obtained or substantially transformed in either country to get preferential rates⁴.

The published reports of the notice did not say whether the quota is allocated first come, first served or pro rata when applications exceed the cap. Importers should read the DGFT notice for the allocation method and the documents required.

Demand so far

Take-up under the quota has been small. In September, DGFT approved applications from seven companies to import 642 cars for the remainder of 2026^1, 2. The 2026 window opened in July¹.

That is well below the 24,500 cars available for 2027. The 2027 quota is open to conventional-engine cars in three engine bands, and to goods vehicles that are not electric or hydrogen powered³.

Checklist for importers

Match each model to its engine-size band and check the quota left in that band³.
Confirm the vehicle has not been registered before import³.
Get written authorisation from the OEM, or buy through an authorised dealer or channel partner^1, 2.
Keep documents that prove UK origin⁴.
File the application by November 21¹.
Model the landed cost both inside and outside the quota, using the non-preferential rate for the second case³.

Applications for calendar 2027 close on November 21, 2026¹. DGFT is also wrapping up its 2026 allocations for UK-origin auto imports¹.

What it means for procurement buyers

For a buying team sourcing UK-built cars or goods vehicles into India, the quota sets the difference between a 10% duty and a tariff the UK government described as up to 110% before the deal³. On high-value vehicles, that difference is the largest line in the landed cost.

The constraint is volume and shape. The 24,500 cars are split into three engine bands, and the 2,750 goods vehicle slots exclude electric and hydrogen models³. Because each band has its own cap, a crowded band can run out while others still have room. Only OEMs, authorised dealers and channel partners can apply, so independent importers need written authorisation before they commit to a shipment^1, 2.

Action points. Fix which band each 2027 model falls into, then price it at both the 10% in-quota rate and the non-preferential rate before signing supply or resale contracts³. Collect UK origin evidence early, because preferential treatment depends on proving the vehicle was wholly obtained or substantially transformed in the UK or India⁴. Confirm that the unit has never been registered abroad³.

Finally, treat November 21 as a hard cut-off and build the allocation into purchase orders now, so a missed quota does not land on the buyer as an unbudgeted duty bill¹.

Sources

1.BusinessLine, DGFT seeks applications from importers to allocate quota for certain goods under India-UK FTA, 6 November 2026. Accessed 7 November 2026.
2.The Economic Times, DGFT invites applications for vehicle import quotas under India-UK FTA, 7 November 2026. Accessed 7 November 2026.
3.BusinessLine, Govt opens TRQ applications for British vehicle imports for CY 2027, 6 November 2026. Accessed 7 November 2026.
4.Wikipedia, India-United Kingdom Comprehensive Economic and Trade Agreement (Wikipedia), 25 October 2026. Accessed 7 November 2026.

How this story was made: the Procupy News Desk researched and wrote it with AI tools, working only from the sources listed above. Automated checks confirmed that every number and quote appears in those sources, and a separate AI fact-check compared the story with them before publication. Read our editorial policy. Spotted a mistake? Tell us and we will fix it.