India-Tesla Tariff Shift: Harley-Davidson Duty Elimination, EV Exclusion Looms

India’s interim trade pact with the U.S., effective March 2026, will slash tariffs on high-end internal-combustion cars to 30% from 70%–110% and eliminate duties on Harley-Davidson motorcycles, according to a government official. Electric vehicles are excluded, precluding a potential duty-free entry route for Tesla. Tariffs on engines over 3,000 cc will decline gradually to 30% over 10 years. India has long maintained import duties of 70%–110% on automobiles, while the agreement is not expected to include EVs, contrasting with its broader pact with the EU that covers steeper cuts and eventual EV concessions.