Based on sources, the government is considering a new EV strategy modeled after a phased manufacturing plan (PMP). This is part of a strategy to entice global automakers like Tesla into the high-end electric vehicle market. According to the report, the new plan is expected to be company-agnostic and respond to the needs of the entire industry, as well as play a role in boosting the EV ecosystem in India. The plan is based on the fundamental premise that a phased manufacturing programme will assist businesses in gradually increasing their level of indigenization.

The government expects its incentives to meet domestic demand while also providing a foundation for exports. These incentives are also expected to aid in the development of capacity in a new segment while minimising the impact on domestic companies such as Tata Motors and Mahindra. It should be noted that these two companies are investing heavily in the electric vehicle space. According to the report, the new plan will include a graduated duty structure to encourage domestic manufacturing.

According to sources, this plan has the potential to accelerate India's transition to EV while also boosting an emerging segment. Tesla is currently planning to expand beyond China, which is one of its primary manufacturing bases. There have recently been enough indications that Elon Musk's EV behemoth is looking to "bring its entire ecosystem, including vendors, to India," according to officials. According to the report, Tesla is already sourcing goods from India worth around Rs 12,000 crore. During previous discussions, officials reportedly told Tesla that the company could enter through the PMP or FAME routes, according to the report.