The government of India plans to reduce import duties on EV cars from the USA as part of a business agreement. The move can benefit companies such as Tesla, which want to enter in the Indian market. However, local car manufacturers, including Tata Motors and Mahindra and Mahindra, are Concerned about this. They’ve invested a lot of funds in domestic EV production and feared that cheaper import duties could harm their competitiveness. At the moment, only 2.5% of car sales in India with a goal to reach 30% by 2030. Reduced tariff rates can make foreign car makers even cheaper, but it is important to balance it with healthy support for local manufacturers.
Indian car manufacturers are preparing for low import duties among new trade agreements
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