Story perspectives

India Lowers Tariffs on U.S. Cars, Excludes Electric Vehicles

2/7/2026

Summary

Story summary

India unveiled a trade pact lowering tariffs on high-end American cars to 30% and eliminating duties on Harley-Davidson motorcycles, with electric vehicles excluded.
The deal directly affects Tesla, Inc., which has struggled since its July 2025 launch, selling 227 vehicles in 2025.
BYD and BMW performed better than Tesla in 2025.
The exclusion of electric vehicles (EVs) contrasts with EU terms, underscoring India's preference for local manufacturing over imports.

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Story summary

India unveiled a trade pact lowering tariffs on high-end American cars to 30% and eliminating duties on Harley-Davidson motorcycles, with electric vehicles excluded.
The deal directly affects Tesla, Inc., which has struggled since its July 2025 launch, selling 227 vehicles in 2025.
BYD and BMW performed better than Tesla in 2025.
The exclusion of electric vehicles (EVs) contrasts with EU terms, underscoring India's preference for local manufacturing over imports.