New Delhi, July 25 -- The UK government expects bigger inroads of up to $240 million (about Rs.2,076 crore) in auto parts and engine exports to India, surpassing luxury cars, after its free-trade agreement with India.

The pact opens up the Indian market for companies including GKN Automotive, Cosworth and Ricardo Plc, among others. According to the UK government's assessment, auto component exports will jump by about £190 million or 150%, suggesting that auto parts and engines to be a key winner for Britain as part of the trade deal.

While India's auto component industry doesn't see it as a challenge, the UK's assessment suggests a spike in imports from India in the next few years.

Under the tariff agreement, most auto parts such ...