Govt May Cut Tariff on EVs

India plans to lower import tariffs on electric cars, rejecting requests from local automakers to delay such cuts by four years, as New Delhi prioritises closing a trade deal with the United States, government and industry sources told Reuters.

- REUTERS

The automakers are lobbying Prime Minister Narendra Modi's government to delay any cut in EV tariffs until 2029, and then phase in a reduction to 30 per cent from as high as roughly 100 per cent, two industry sources and one government official said.

However, New Delhi is serious about lowering EV tariffs — which have riled US President Donald Trump and his ally Tesla CEO Elon Musk — and the sector is set to be part of the first tranche of tariff reductions in a planned bilateral trade deal, this government official, and another source said.