UK FTA Aids Next Gen JLR EVs Adoption in India

Chintan Mehta

20 May 2025, 06:26 PM

3 Mins read

1.6K

The efforts by Jaguar Land Rover (JLR) to bring its next BEVs to the Indian market will be boosted by the recently finished Free Trade Agreement (FTA) between the United Kingdom and India.

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Quick Comparison: Before & After the UK-India FTA

Aspect	Before FTA	After FTA
Import Duty on EVs > $40,000	110%	50%
Import Duty on EVs < $40,000	70%	10%
Impact on JLR EVs	High import cost	Lower import cost
Local Assembly	Focused on ICE models	Will expand to select EVs
Market Competition	Limited	Expected to grow

This agreement will greatly reduce the duties that apply to electric cars produced outside. Those importing new cars that cost more than $40,000 will only pay 50% duty, whereas cars priced below that limit will have a duty of just 10%. This will open up EVs at the top end to more Indian buyers, increasing the competition between luxury EVs.

“JLR India is isolated from the duty structure, and that will continue. The FTA, however, helps a lot of our future cars that we would not necessarily have a completely knocked down (CKD) operation in India, particularly the BEVs,” the Chief Financial Officer of JLR, Richard Molyneux, mentioned this on the post-earnings call.

Upcoming Advancements in the Electric Category

Expect the FTA to assist in bringing new electric models from JLR to the market, with the Jaguar Type 00 being a four-door grand tourer that helps the company go all-electric. Jaguar Land Rover will introduce an electric version of the Range Rover later this year.

Since these Land Rover models are built in Pune using CKD, it is unlikely that the FTA will result in effective price cuts.

As a result, the FTA could help JLR reduce its expenses and encourage lower prices, making JLR more competitive with rivals like Tesla, Mercedes-Benz and BMW in the world market.

JLR Sees Increased Business in India

In FY25, the Jaguar Land Rover company saw a huge increase of 40% in its Indian sales from the previous year, selling 6,183 units. With this result, JLR moved up to rank third among luxury carmakers in the country, after Mercedes and BMW, ahead of Audi.

“India is a very high growth market and our brands have a lot of affinity. We will absolutely leverage the FTA to increase our revenue and share of the high-net-worth customer base,” Molyneux added.

Moving towards EVs in every country

As it follows its global strategy, Jaguar Land Rover will move away from using internal combustion engines in its Jaguar models. After producing the Jaguar XE, XF and F-Type in 2024, both the I-Pace and E-Pace were discontinued. The UK’s Solihull plant will produce F-Paces until 2025, after which the all-electric Jaguar Type 00 will begin Jaguar’s new electrified era.

JLR is also working on adding the Defender to products made in India, giving them further potential to influence prices.

Competitive Outlook

After cuts are enforced, we can expect international brands to find the Indian high-end EV market more attractive. Tesla’s entry into India is not set, but the FTA might lead to its earlier arrival in the country.

JLR will use the agreement to increase its footing in a fast-growing market for luxury cars because buyers and the government are prioritizing electric vehicles.

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jaguar land rover

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