Tata Motors has begun preparations to enter the UK passenger vehicle market, with the company estimating that the process will take around two and a half years. The move comes ahead of the India-UK Comprehensive Economic and Trade Agreement (CETA), which will gradually allow duty-free exports of Indian-built electric vehicles to the UK through an annual quota system.
- Certification and dealer network planning already underway
- Duty-free EV quota to rise to 88,000 units annually under FTA
- Avinya EV range being developed with global markets in mind
Preparations underway for UK market entry
Speaking on the sidelines of the Sierra EV launch, Tata Motors Passenger Vehicles managing director and CEO Shailesh Chandra said the company has already started work on its UK market entry. "We are starting to tap that market opportunity. The go-to-market plan itself requires about two to two and a half years of work, and that process has now begun," Chandra said.
Chandra said preparing for the UK market involves a lengthy process that includes vehicle certification, compliance with local regulations and establishing distribution and after-sales operations. He did not indicate when commercial sales would begin.
Trade pact to open phased EV exports
Under the India-UK trade agreement, Indian-built electric vehicles will receive duty-free access to the UK through an annual quota from the sixth year of the agreement. The quota will begin at 17,600 vehicles a year and gradually increase to 88,000 units annually by the fifteenth year.
The UK is expected to be one of Tata Motors' first new passenger vehicle export markets. As a right-hand-drive market, it requires fewer engineering changes than left-hand-drive markets for vehicles developed in India.
Exports to support future growth
The export plans come as Tata Motors expands its EV portfolio with the Sierra EV and the upcoming Avinya range. Our sister publication, Autocar Professional had earlier reported that the Avinya programme is being developed with global markets in mind, although Tata Motors has not yet disclosed which overseas markets it will enter first.
At its Investor Day earlier this year, Tata Motors said it plans to increase annual passenger vehicle sales to more than 1.2 million units by FY31 while expanding its portfolio from 9 to 15 models. Exports are expected to play a bigger role in supporting that growth over the coming years.
Viraaj Bhatnagar
Dipan Sur
