Aston Martin Anticipates India-UK Free Trade Agreement to Lower Car Import Tariffs

07 Oct, 2023

Aston Martin Anticipates India-UK Free Trade Agreement to Lower Car Import Tariffs

Aston Martin, the renowned luxury car manufacturer, is eagerly anticipating the outcome of a potential free trade agreement (FTA) between India and the UK, which could lead to a reduction in import duties. Such an agreement would pave the way for easier access to high-end luxury cars in the Indian market, according to a senior official at Aston Martin.

Gregory Adams, Regional President - Asia at Aston Martin, shared his optimism regarding the FTA's impact, drawing parallels to recent agreements in Australia and New Zealand that have successfully reduced import duty burdens for customers. Adams stated, "Very recently in Australia and New Zealand, the same thing (FTA) came into effect. It is really helping to reduce the burden on our clients. But, let's see if that works out...we will be happy if that happens."

When asked about the high import duty structures for foreign cars in India, Adams acknowledged the importance of free access to goods that consumers desire. He highlighted that India is not the sole nation grappling with such duty structures, as there are other countries with even steeper or more complex duty systems. Nevertheless, he affirmed that Aston Martin is committed to working within the local requirements to ensure their cars reach customers.

Currently, India and the UK are in the final stages of negotiating the proposed FTA, with expectations of concluding the deal by the end of the year.

Aston Martin has had a presence in India since 2011 and has been diligently working to establish and develop its market. Gregory Adams expressed the company's high aspirations for India's growth, emphasizing that the country's growth rate and the increasing number of high net worth individuals are indicative of a promising future for the luxury car market.

While the company currently sells 10-15 cars a year in the Indian market, they have ambitious plans to increase their sales. Aston Martin primarily caters to young professionals in their mid-40s. The company's future plans include expanding their portfolio to include electric vehicles (EVs), mid-engine SUVs, and GT sports cars.

Recently, Aston Martin introduced a new car, the DB12, in India. The starting price for the Aston Martin DB12, known as the world's first Super Tourer, is ₹4.59 crore, excluding customization options. This move reflects Aston Martin's commitment to providing Indian consumers with the latest and most prestigious offerings in the luxury car segment.