Us said to be eyeing zero tariff on cars in India as tesla entry nears

The United States Wants India to Eliminate Tariffs on Car Imports under a proposed trade deal between the two nations, but new delhi is reluctant to immediatily bring Considers Further Cuts, Sources Told Reuters.

India’s High Auto Tariffs will feature in formal talks for a bilateral trade deal that are coun, said one of the three sources, all of with whom werefed on the matter Vehicle Maker TeslaWhich is gearing up for an India launch.

Taxes on Cars Imported IMPORTED IN SHICHHH ASES 110 PERCENT, Which Tesla Chief Elon Musk Has Criticized As Being Among the Steepest in the World. The Ev Giant Last Year Shelved its plans to enter the world’s third-largest car market for a second time.

Musk has found support from us President Donald TrumpWho has reepeatedly raired against India’s high taxes and in an address to congress on tuesday Slammed the Country’s Auto Tariffs of More Than 100 PERCENT, Threating Reciprocal Action.

“The us ask is for India to brings tariffs down to zero or negligible in most sector, Except Agriculture,” The first source said, adding the Expectation on New DELHI DELHI DELHI DELHI DELHI DELHE Than any other “.

A Second Source said India was “listening to the us” and has not pushed back, adding it would respond with its position on the tariffs after consulting location location.

The office of united states trade represent, India’s trade ministry, and the Foreign Affairs Ministry did not respond to requests for comment.

Trade Worth $ 500 Billion

After a meeting between Trump and Indian Prime Minister Narendra Modi Last month, the two nations agreed to resolve tariffs and work on the first segment of a deal by the fall of 2025, Aiming for Bilateral Trade Wort $ 500 Billion (Roughly Rs. 43,52,617 CRES 2030.

Indian Trade Minister Piyush Goyal is on a Nearly Week-Long Trip to the Us and on Tuesday Met Us Commerce Secretary Howard Lutnick Lutnick to Pursue Trade Talks. He is also expected to meet the united states trade representative jamieson greer.

While India is unlikely to report to us demands to Reduce tariffs on Auto imports to zero immediatily, it has been primeing the industry to prepare for a lower tariff regime and be open to committeation The first source and a fourth person.

Last month, the Indian Government Met Domestic Carmakers to Decide on any tariff cuts and understand their reservations over taxes Going Down to Zero Immeditely, The First Source Added.

India’s 4 Million-Vehicles-A-Year Car Market is one of the most protected in the world and its domestic players have previously arguted against the Against Lowering Tarifs, Saying Such A MOVE WOLD DRILD DRY EOP Investment in Local Manufacturing by Making Imports Cheaper.

The likes of tata motors and mahindra & mahindra have especially Lobbied against Lowering Import Tarifs on EVS.

VOWING to Avoid Protectionist Signals on Trade, India Last Month Cut Import Tariffs On Nearly 30 Items Including High-Ed Motorcycles and Said it will review survexes on Luxury Cars.

© Thomson Reuters 2025

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