SMMT Welcomes Potential for Enhanced UK-India Automotive Collaboration Following Trade Deal Discussions
The Society of Motor Manufacturers and Traders (SMMT) has issued a statement offering a positive outlook on the ongoing discussions surrounding a UK-India Free Trade Agreement (FTA). Published on July 24th, 2025, at 08:07, the SMMT’s perspective highlights the significant opportunities a comprehensive trade deal could unlock for the UK automotive sector, fostering closer collaboration and mutually beneficial growth with India.
The SMMT, representing the UK’s automotive industry, acknowledges the strategic importance of the Indian market, which is one of the world’s largest and fastest-growing car markets. The prospect of an FTA presents a valuable platform to reduce existing trade barriers and streamline market access, thereby encouraging greater investment and trade between the two nations within the automotive sphere.
Key areas where the SMMT anticipates positive impacts include the potential for reduced tariffs on UK-manufactured vehicles and components entering India. Such reductions could make British-made cars more competitive in the Indian marketplace, boosting export volumes and supporting the UK’s automotive manufacturing base. Conversely, a more favourable environment for Indian automotive products entering the UK could also benefit UK consumers with a wider choice of vehicles and competitive pricing.
Beyond direct trade, the SMMT statement also emphasizes the broader economic benefits of a robust UK-India trade relationship. This includes the potential for increased collaboration in areas such as research and development, supply chain integration, and the adoption of new technologies. As both nations strive for net-zero emissions, an FTA could facilitate the exchange of expertise and innovation in electric vehicle (EV) technology, battery manufacturing, and sustainable mobility solutions, aligning with global decarbonisation goals.
The SMMT’s engagement with the UK government throughout these trade negotiations underscores the industry’s commitment to securing a deal that delivers tangible advantages. The society has consistently advocated for an agreement that is ambitious, comprehensive, and addresses the specific needs and sensitivities of the automotive sector.
While the specifics of any final agreement will be crucial, the SMMT’s statement conveys a sense of optimism regarding the potential for a UK-India trade deal to invigorate the automotive industries of both countries. By fostering a more open and predictable trading environment, the FTA has the capacity to drive economic growth, create jobs, and enhance the global competitiveness of the UK automotive sector. The SMMT looks forward to further developments and stands ready to support the implementation of a mutually beneficial agreement.
SMMT statement on UK-India trade deal
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