India uk fta aston martin mini cooper could get cheaper by up to 40% in india

India uk fta aston martin mini cooper could get cheaper by up to 40% in india

British-made luxury cars from the stables of Aston Martin and Mini could get cheaper for Indians roughly between 25 per cent and 40 per cent after the new tariff structure of the India-UK Comprehensive Economic and Trade Agreement (CETA) is implemented.

Under the agreement, tariffs on imports of internal combustion engine (ICE) cars will be slashed to 30-50 per cent in the first year of implementation, with the benefit limited to a quota of 20,000 cars. The tariffs will be reduced gradually, and after 15 years, they will become 10 per cent, with the quota set at 15,000 units. For out-of-quota imports of ICE cars, the duties are reduced to 60-95 per cent in the first year, and further to 45-50 per cent from the tenth year onwards.

In 2016, the rough CIF (cost, insurance and freight) value of the Mini Cooper S, the standard version of the popular hatchback, was $17,682 when it was imported into India in October that year, according to data from a trade intelligence platform. In 2016, the car retailed for around $23,000 in the USA, suggesting a markup over its rough CIF of a little over $5,000. In 2025, the car retails for around $30,000 (Rs 26 lakh in 2025) there.

India, the base version of the car starts from around Rs 45 lakh currently, since it currently incurs a duty of about 70 per cent, which amounts to Rs 13.5 lakh. Based on these figures, the rough CIF of the Mini Cooper that’s imported into India from the UK currently could be around Rs 21 lakh ($24,000).

So, when the new tariff rates, facilitated by the CETA kick in, the duty on the Mini Cooper could go down from the current 70 per cent to between 30-50 per cent. At 30 per cent, the car could cost Rs 27.3 lakh, down from the current Rs 45 lakh, a saving of nearly 40 per cent. At 50 per cent, the car could cost Rs 31.5 lakh, which would still be a saving of 30 per cent. These are the initial rates, and prices could fall in subsequent years when the duty reduces further.

Similarly, in 2016, an Aston Martin Vanquish was imported in India at a CIF value of $214,607, as per data available with the trade platform, and in that year, the car retailed for around $290,000. Adjusting for currency changes and some inflation, the car’s current CIF value could be around $320,000 (Rs 2.8 crore).

It needs to be noted that these rough calculations do not account for fluctuations in demand or production costs, company markup, currency differentials and inflation. Aston Martin and BMW (the parent company of Mini) did not respond to an immediate request for comment.