UK seeks duty cut on EVs in free trade talks

New Delhi, November 8

The UK is pushing for a cut in customs duty on electric vehicles in the ongoing negotiations for signing a free-trade deal with India, a senior official confirmed.

At present, there is a customs duty of 60% on imported cars priced below $40,000 while it is 100% on those priced above this point.

The UK has suddenly brought in the new proposal on electric vehicles which is not easy for India to concede. A similar request to cut customs duty on cars was made by US electric vehicle maker Tesla but the government has made it clear that the company must set up manufacturing facilities in India if the company wants to sell its cars in the country.

It will weigh heavily while considering the UK proposal. India is keen to protect its own EV industry which is just beginning to take off and it is not easy to give any duty relief to foreign companies, sources said. The two nations expect bilateral trade to double to $100 billion by 2030 if the FTA is implemented.