Tesla (NASDAQ:TSLA) is making another run at India, but it won't be a smooth ride. The U.S. wants India to scrap tariffs on auto imports, but New Delhi isn't ready to go that farat least not yet. With tariffs as high as 110%, Tesla has long called out India's protectionist stance, and now President Trump is adding pressure, threatening reciprocal trade measures if tariffs don't drop. While India has already reduced some duties and is reviewing further cuts, local automakers like Tata Motors and Mahindra are pushing back, arguing that a flood of cheap imports would kill domestic investment in EV manufacturing.

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Even if Tesla gets the tariff break it wants, there's a bigger problem: price. Industry expert Arun Malhotra points out that even with a 0% duty, a Tesla in India would cost around ?35 lakhway above the price range for 95% of Indian buyers. Meanwhile, homegrown brands like Tata, MG Motor, and Hyundai are already rolling out EVs at much lower prices, making Tesla just another competitor in an already crowded market. At the same time, skepticism is growing around the stability of any U.S.-India trade deal. Trump's track record of tearing up agreementslike NAFTAraises questions about whether any deal made today will hold up tomorrow.

For Tesla, the tariff fight might just be a distraction from the real challenge: winning over Indian consumers. The U.S. isn't even a major car exporter to Indiamost imports come from Japan, Korea, and Thailandso reciprocal tariffs mean little in this space. India has already carved out special rules for EV imports, but slashing tariffs to zero? Not likely. Tesla may have political backing, but that won't help if Indian buyers aren't convinced its high-end EVs are worth the premium price.