India revamps incentives for autos to boost EVs, hydrogen fuel cells – sources

India has revised its proposed $8 billion scheme for the auto sector which will now focus on incentivising companies to build electric and hydrogen fuel-powered vehicles, two sources familiar with the plan told Reuters.

This is a significant shift from the government’s original plan to incentivise auto and auto part maker to build mainly gasoline vehicles and their components for domestic sale and export, with some added benefit for electric vehicles (EVs).

The move to clean technologies comes as Tesla Inc is gearing up to enter India and is lobbying for lower import duties on electric cars. While the government is considering the request, it wants some economic benefit in return which could include a commitment from Tesla to produce cars locally.