The Indian government is set to notify its new Electric Vehicle (EV) policy, which aims to lower import duties and attract global players like Tesla. The policy is expected to mandate a minimum turnover of Rs 2,500 crore by the second year and require an investment of Rs 4,150 crore from interested manufacturers.

The proposed policy will allow companies to set up assembly operations in existing factories but will exclude past investments and land or building costs from the required investment amount. Manufacturers meeting the criteria will qualify for a 15% import duty—a significant reduction from the current 110% tariff, reports Economic Times.

Companies will have 120 days to apply, with the policy allowing annual imports of up to 8,000 premium EVs (priced above $35,000) at reduced duties. Approved applicants must establish manufacturing facilities within three years and achieve 25% local value addition, which must rise to 50% within five years.