Earlier, Tesla CEO Elon Musk said the taxes imposed on imported cars in India can be as high as 110%, making it one of the highest in the world. It is to be noted the electric vehicle major decided to postpone its entry into the world's third-largest car market for a second time last year.

The United States wants India to eliminate tariffs on car imports under a proposed trade deal between the two nations, but New Delhi is reluctant to immediately bring down such duties to zero even as it considers further cuts,

The United States is pushing India to eliminate taxes on imported cars under a new trade deal. Currently, the country charges extremely high taxes on imported vehicles, sometimes going up to 110%. This has made it difficult for foreign carmakers to sell their vehicles in the country.