TMTPOST -- The European Union is pushing India to eliminate tariffs on car imports as part of ongoing trade negotiations, following similar demands recently made by the U.S. under Trump’s administration, Reuters reported. In response, the Indian government is reportedly considering a phased reduction in car import tariffs—from the current rate of over 100% down to 10%—as a gesture to move trade talks forward. Two industry insiders and one government official indicated that while New Delhi is willing to compromise, domestic auto manufacturers are lobbying for a minimum tariff of 30%, arguing for continued protection. They also advocate for keeping import duties on electric vehicles (EVs) unchanged for at least four more years to safeguard the local EV industry. The EU’s demands have intensified pressure on Indian policymakers, especially with the U.S. also calling for zero tariffs on imported cars, including EVs. For European automakers like Volkswagen, BMW, and Mercedes-Benz, lower tariffs would provide a significant opportunity to expand in India’s fast-growing automobile market. Tesla, which is preparing to enter India’s market this year—likely with EVs shipped from its Berlin factory—could also benefit if India agrees to broader tariff concessions. While the discussions are ongoing, any significant reduction in import duties would represent a major policy shift for India and mark a win for global automakers seeking to expand their footprint in one of the world’s largest emerging markets.