Tesla model Y
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CNBC Awaaz10-02-2026, 07:14

Tesla Faces Setback in India: EVs Excluded from New India-US Trade Deal

  • New India-US trade deal reduces tariffs on Indian goods and high-end American cars, but excludes Electric Vehicles (EVs).
  • Elon Musk's Tesla, seeking lower import duties in India, receives no relief from the interim trade pact.
  • Tariffs on internal-combustion cars over 3000 cc will decrease to 30% over 10 years, but EVs are left out.
  • India's decision contrasts with tariff reductions for European auto companies, including some EVs, in EU deal.
  • Tesla struggles in India, selling only 227 cars in 2025 and offering discounts amid global sales decline.

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