India's Narendra Modi administration may evade its years-long approach to trade protectionism and immense tariffs on imported electric vehicles as it struck a trade deal with U.S. President Donald Trump.
The decision reported to Reuters by government and industry sources will not violate the requirement to delay the collection of local automakers, Who has the lobbying to grow up Oppose reducing tariffs on imports of electric vehicles.
“We have protected the automotive industry for too long. We will have to open it,” a government official told Reuters, adding that the plan was to reduce tariffs “significantly”.
Also in AF: Tokyo, Seoul denies China's joint response to US tariffs
However, officials declined to disclose the scale of the planned layoffs, however, given the ongoing negotiations with Washington.
The retreat of domestic car halls has been a key reason why the Indian government has delayed import taxes for months.
Despite interest in entering the market several years. India currently charges levies up to about 100% of imported electric vehicles.
Sources told Reuters that this time it was New Delhi taking the tariffs on electric vehicles seriously. The industry will be part of the first tariff reduction in a planned bilateral trade agreement with the United States.
Deal is crucial for Delhi, Trump will unveil His “Liberation Day” reciprocal tariffs
Trump has been Harsh critics India has high import taxes, calling the country a “tariff king”.
As a result, New Delhi is likely to be vulnerable to Trump’s reciprocity tax. It is considering cutting import taxes Imports in US$23 billion “Save” its export.
Want to delay the lobby
Local Indian automakers are lobbying the Modi government to postpone any cuts in EV tariffs until 2029, and then reduce them to 30%.
The immediate cut will be a setback for domestic players such as Tata Motors and Mahindra & Mahindra, which have invested millions of dollars and will invest millions in local electric vehicle manufacturing.
However, it would be a win for Tesla, which completed its showrooms in Mumbai and New Delhi, and began selling imported cars in South Asian countries this year. Trump says Tesla is currently selling in India “impossible” And it's unfair If a factory had to be built there.
Indian automakers fear that any deal with the United States would set a precedent for ongoing trade talks with the EU and the UK, exacerbating competition in India's small but fast-growing EV sector.
Sources told Reuters that automakers could immediately cut gasoline models and then cut them to 30% in phases, but said their electric vehicle investment was linked to a local manufacturing plan in New Delhi, which would be until 2029. Indian automakers say allowing cheaper imports before this will hurt their competitiveness.
Tata Electric currently dominates electric vehicle sales in India, which accounts for only 2.5% of the country's 4.3 million vehicle sales in 2024.
The Modi government hopes to increase the share of electric vehicles to 30% by 2030.
- Reuters, other editors of Vishakha Saxena
Please read also:
India's criticism of U.S. tariffs exchange rate sinks, Xi Jinping urges trade to “tango”
Asian markets collapsed when Trump vowed to swear tariffs on every country
Indian Eye’s tariff cuts $23 billion to “save exports” imports
India ends manufacturing plan, focusing on tariff cuts
Tesla prepares for what Trump calls “unfairness” and prepares for India's entry
After Trump announces 25% car tariffs
Indian automaker blocks EV import tax cuts to prevent Tesla from entering
Ministry of Technology warns India's high taxes will undermine export targets
Tata in India
