India will develop new policy to attract electric vehicle (EV) manufacturers and encourage greater investment in the sector, the commerce minister has said.

According to Reuters, Piyush Goyal’s comments came as Tesla continued talks with Narendra Modi’s administration on the possibility of building a factory in India.

Reuters had, citing sources, last month reported India was working on EV policy which would cut import taxes for automakers committed to some local manufacturing.

Asked about the government’s plans, Goyal said consultation on the new policy would be held with the industry.

“We will come out with a policy,” he said, adding the government wanted to attract more investment and increased domestic EV production as soon as possible.

“As we get large scale production, we will start enjoying the fruits of economies of scale of new technologies,” Goyal said without disclosing the nature of any possible incentives.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Advertisement · Scroll to continue
Tesla’s senior executives with an interest in building a factory in India met Goyal in August.

Tesla plans to produce a low-cost EV priced at $24,000 – about 25% cheaper than its existing entry-level model – for both the Indian market and export.

Goyal had said earier Tesla aimed to source components worth between US$1.7bn and $1.9bn from India this year, having bought $1bn of components last year.