The government unveiled a new EV initiative on Friday with the goal of turning India into a center for electric vehicle manufacturing. In a statement, the Ministry of Commerce & Industry stated that the goal of the policy is to entice reputable international EV manufacturers to invest in the e-vehicle market.

With this program, Indian customers will have access to state-of-the-art technology and the 'Make in India' campaign will be promoted. By promoting healthy competition among participants, it will improve the electric vehicle ecosystem by generating higher production volumes, economies of scale, and lower production costs.

In addition, the Ministry of Commerce & Industry stated that it will reduce the import of crude oil, reduce the trade imbalance, lessen urban air pollution, and have a good impact on the environment and human health.

Certain electric vehicles would have their import charges reduced under the new policy, provided that the business agrees to a minimum investment and the establishment of a manufacturing plant in India within three years. The new electric car regulations will aid in luring in foreign investment from businesses like as Tesla, founded by Elon Musk.