Effect of FTA
Under the FTA, customs (import duty) on cars being imported from Britain to India will be drastically cut, which will reduce the prices of these cars. Currently, up to 100% import duty is imposed on luxury cars imported from Britain, but after FTA it can be reduced to 10%. Accordingly, import duty will be reduced by 90 %.
JLR cars, such as range rover and defender, will also have a direct impact, after the import duty decreases by 90 %, the price of JLR cars is going to be a big impact. Which will reduce their prices.
Local assembly
JLR is also planning to assembling a local of some of its models in India, which can reduce prices further. According to an estimate, if the JLR starts assembled by the defender, then its price may decrease by up to 20%. Apart from this, a similar effect is expected to have a similar effect on the price of other luxury cars like Rolls Royce.
Low burden on buyers' pockets
Due to FTA, Indian customers will now be able to buy these luxury cars close to global prices, which will cost less on their pockets. On some models, such as Defender, FTA made in Slovakia will not have a direct impact, but starting the local assembly of JLR can reduce prices.