India is planning to reduce import tariffs on electric vehicles despite local automakers' request to postpone the cuts for four years. The focus is on striking a trade deal with the United States, which has led to the decision to lower electric vehicle tariffs sooner than proposed. The government is determined to decrease tariffs significantly, including on electric vehicles, even though specific figures have not been disclosed due to ongoing negotiations with the U.S. India's move to lower duties on electric vehicles is part of efforts to enhance relations with the U.S., even as President Donald Trump prepares to announce reciprocal tariffs on trading partners. This decision could benefit companies like Tesla, which are keen on expanding into the Indian market, but may pose challenges for local automakers like Tata Motors and Mahindra & Mahindra, which have already heavily invested in local electric vehicle manufacturing. The aim is to foster growth in the electric vehicle sector, which currently accounts for a small portion of total car sales in India, with plans to increase its market share to 30% by 2030.
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