Tata Motors is leading the gains, followed by Bharat Forge, Ashok Leyland, TVS Motor Company, and MRF. Naerly 10 out of the 15 constituents of the Nifty Auto index are trading in the green today.
While overall auto trade volumes remain modest, the impact will be majorly on premium vehicle imports.
The UK government said that under the FTA, Indian tariffs on automotive imports will fall from over 100% to 10%. Both countries will also introduce quotas for auto imports.
This move is expected to make premium UK vehicles more accessible to Indian consumers.
Key beneficiaries
Tata Motors: Likely to see a sales boost for Jaguar Land Rover (JLR) in India.
Eicher Motors (Royal Enfield): Benefits from a strong UK presence; potential for margin improvement and volume growth.
Other Auto Companies: Improved competitiveness due to lower import costs.
TVS Motor Company Managing Director Sudarshan Venu told news agency PTI that the FTA between the two countries would help its British brand ‘Norton’ to scale faster.
“Our British brand ‘Norton’ will launch later this year and this agreement will help us scale faster and leverage common supply chains. We are excited as we further progress towards Viksit Bharat,” he added.
The FTA marks the first major trade pact between India and the UK and aims to double bilateral trade to $120 billion by 2030. Bilateral trade already rose from $20.36 billion in FY23 to $21.34 billion in FY24.
Indian exports to the UK are expected to rise sharply by 2027, particularly in apparel, auto components, and chemicals, thanks to the preferential terms under the FTA.
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