By Venkatachari Jagannathan
UK-based super-luxury carmaker Rolls-Royce Motor Cars is studying the regulatory and taxation implications of the India-UK Free Trade Agreement (FTA) and will pass on the benefits of lower taxes to its customers, a senior company official said.
The company also does not expect the geopolitical situation, including the war in the Middle East, to have a major impact on its business.
Company studying FTA implications
Speaking to the media in Chennai, Director of Sales & Brand, Julian Jenkins said, “At the moment we are looking at the regulations and working with various authorities.”
According to Jenkins, the FTA does not change the value proposition offered by Rolls-Royce cars. The change would essentially be in taxation, and the company is working with the authorities to understand its implications.
The benefits arising from any reduction in taxes following the FTA will be passed on to customers, while the value offered by Rolls-Royce cars will be retained, he said.
However, while the FTA has reduced India’s import duties on cars from the UK, the depreciation of the rupee against the pound sterling could also have an impact, an official said.
Import duties to fall in phases
Prior to the trade agreement, India’s customs duty on imported completely built cars was about 110%. Under the India-UK agreement, tariffs on qualifying UK-built completed motor vehicles can eventually fall to 10% over a period of time, within specified tariff-rate quotas (TRQs).
The UK government’s impact assessment has identified motor vehicles as one of the sectors expected to benefit substantially from the trade agreement. It estimates that UK motor vehicle exports to India could increase by about £890 million, or 310%, in the long run compared with a scenario without the FTA.
Spectre gains traction in India
Meanwhile, Rolls-Royce Motor Cars’ electric vehicle, the Spectre, is logging good sales numbers in India. The model also benefits from road tax exemptions available to battery-powered vehicles in some Indian states.
Geopolitical tensions unlikely to have major impact
Asked about the possible impact of the geopolitical situation, including the war in the Middle East, on the company’s global sales, Jenkins said Rolls-Royce does not chase volumes but focuses on value, while its production line is flexible.
He said the company had been in existence for 122 years and had witnessed several geopolitical situations during that period. It would manage the current conditions as well, he added.
New showroom opens in Chennai
Jenkins was in Chennai to inaugurate a new Rolls-Royce Motor Cars showroom.
“India occupies a unique place in the Rolls-Royce story. For more than a century, Indian patrons have commissioned some of the most remarkable and imaginative motor cars ever created, establishing a legacy of individuality and personal expression that continues to this day. Rolls-Royce Motor Cars Chennai has played an important role in serving clients across the region. This new space marks an important step for the marque and our clients, reflecting Rolls-Royce’s position as a true House of Luxury and our commitment to India. I am delighted to celebrate this milestone with the team,” Jenkins said.
“For over a decade, our relationship with Rolls-Royce Motor Cars has been built on trust and a shared pursuit of excellence. This newly redesigned showroom reflects that remarkable journey: a space created around the ambitions of the clients we serve in Chennai and across southern India. We are incredibly proud to welcome them into an environment designed to inspire imagination, celebrate individuality and deliver an exceptional Bespoke client experience,” Vasanthi Bhupathi, Dealer Principal, Rolls-Royce Motor Cars Chennai (KUN Exclusive), said.
India emerges as a key growth market
The showroom opening comes at a time when Rolls-Royce Motor Cars continues to see strong growth in India, which was its highest-growth market in the Asia-Pacific region in 2025.
(Venkatachari Jagannathan can be reached at venkatacharijagannathan@gmail.com.