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According to the report, the policy was originally designed to attract Tesla to the Indian market and manufacture locally which did not happen.

Foreign automakers like Toyota and Hyundai have shown interest in making EVs in India, the report said, adding that the newly altered policy may encourage them further.

India’s current EV policy was announced in March this year and gave a huge import taxes cut from as much as 100% to just 15% for up to 8,000 EVs. However, this policy was meant for automakers investing at least $500 million to manufacture EVs in India with 50% of locally sourced components.

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The new changes to the policy will include EV investments at existing factories that build internal combustion engines and hybrid cars, but the electric models must be built on a separate production line and meet local sourcing criteria.

Investment in machinery and tools will be counted even if these are also used to manufacture other types of cars too, according to the report.

There will also be a minimum EV revenue target a plant or a production line should meet to qualify for the scheme.

The policy is likely to be finalised by March next year, according to the report.

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