India is actively working on a new electric vehicle (EV) policy, responding to a proposal from Tesla, as the country aims to boost its EV market.

Tesla’s suggestion has garnered interest from Indian officials, although the commerce ministry and Tesla have yet to comment.

This move aligns with India’s growing interest in electric vehicles. Where EV sales remain a small fraction of the total automobile market but are rapidly expanding.

Meetings between Tesla representatives and Indian officials, including Prime Minister Narendra Modi, have indicated high-level interest in the proposal.

The policy remains in its early stages and the final tax rates could change. Yet, it signals India’s intent to align with global trends in EV adoption and incentivize the production of electric vehicles domestically.