New Delhi, July 25 -- India's automakers are set to gain access to the UK market as the free-trade pact between the two nations removes 18% duty on exports to the European nation. The India-UK Comprehensive Economic and Trade Agreement (CETA) also protects the domestic clean mobility market by offering no concessions to the UK. "India shall not provide any out-of-quota preferential customs duty on zero emission vehicles (electric, hybrid or hydrogen fuel vehicles)," the trade documents by the UK government said. Domestic hybrid vehicle sales rose about 12% year-on-year to 365,024 in FY25, while pure electric vehicle (EV) sales rose 17% to 1,967,313 units, showed data from the Vahan portal. However, concessions offered by India, the world's third-largest auto market by sales, will make luxury car imports from the UK cheaper. Models from companies including Tata Group-owned Jaguar Land Rover, Aston Martin, and Rolls-Royce can get cheaper in India, which saw 51,000 luxury car sales in FY25. Prime Minister Narendra Modi signed the historic bilateral deal covering goods and services in the UK on Thursday. The pact laid out a plan for gradually reducing import duties on various products for at least 10 years. For some goods such as UK-made fossil fuel cars and high-end hybrid, electric, and hydrogen vehicles, the agreement lays out a 15-year plan of gradual duty reduction. As per the CETA, India has agreed to gradually reduce tariffs on British luxury cars, with a maximum 37,000 cars seeing base tariffs at 10% in the fifth year. From thereon, the number of cars allowed at this rate would reduce eventually to 15,000 at the end of 15th year. "The proposed reduction in duty to 10% on all UK-manufactured vehicles over a period 10 years for EVs and five years for other cars-subject to defined quotas and eligibility norms-are expected to make premium cars significantly more accessible to Indian consumers," said Saurabh Agarwal, partner & automotive tax leader, EY India. Indian companies that stand to gain include TVS Motor Co., which has a UK subsidiary, Norton Motorcycles; and Hero MotoCorp Ltd, which plans to enter UK in the second half of the fiscal. "...