TL;DR
A new India-US trade deal will slash tariffs on luxury American cars and eliminate duties on Harley-Davidson motorcycles, but notably excludes electric vehicles from concessions.
An interim trade agreement between India and the United States, formalized on February 6, 2026, will significantly alter the landscape for luxury American automobiles and Harley-Davidson motorcycles in the Indian market. Under the pact, India has committed to reducing tariffs on high-end American cars with engine capacities exceeding 3,000cc, lowering them from a previous high of up to 110% to 30% over a decade. Furthermore, import duties on Harley-Davidson motorcycles will be completely eliminated.
However, electric vehicles (EVs) have been conspicuously excluded from these tariff concessions. This decision effectively blocks a potential lower-tariff entry route for EV manufacturers like Tesla, a point of contention for companies advocating for reduced import duties on electric vehicles in India. The exclusion highlights India's intent to protect and foster its nascent domestic EV manufacturing ecosystem.
