India intends to extend the incentives for electric vehicles to automakers who are constructing models at the nation's current factories rather than restricting them to those who are willing to construct new facilities.

Originally intended to encourage Tesla to enter the Indian market and produce domestically, India's EV policy is still being finalized. However, earlier this year, the US automaker withdrew its ambitions.

According to the minutes of a meeting with India's minister of heavy industries, other international automakers have expressed interest in producing EVs in India at both new and existing factories.

An manufacturer that invests at least $500 million to manufacture EVs in India with 50% locally sourced components is eligible for a significant reduction in import taxes under the March policy. The tax rate will drop from 100% to 15% for up to 8,000 electric cars annually.

The government would now also take EV expenditures into consideration at existing plants that currently produce gasoline-engine and hybrid automobiles.

According to the report, the electric versions must, however, be constructed on a different production line and satisfy the local sourcing requirements.

Even if the machinery and tools used to create EVs are also used to manufacture other kinds of automobiles, the $500 million requirement will be fully included toward the investment in a new facility, he said.

"The government will set a minimum EV revenue target for a plant or a production line that must be met to qualify for the scheme in order to ensure automakers are treated fairly," he said.

By March, the policy would be finalized, he added.

According to the meeting minutes, Toyota representatives inquired as to whether investing in a separate assembly line within a facility that manufactures various powertrains would be permitted by the EV policy.

It also attempted to ascertain whether the production and setup of charging stations would be included in the $500 million investment need.

Requests for response from Reuters were not answered by Toyota or the ministry of heavy industries.

Hyundai inquired as to whether funds allocated for research and development might be included in the $500 million investment requirement. It won't be counted.

According to a spokeswoman, Hyundai Motor India is waiting for the final policy and guidelines to be released.

Volkswagen's India division requested additional flexibility in the investment period. It inquired as to whether seventy-five percent of the $500 million may be invested in the first three years of the five-year plan, rather than the existing need of 100 percent. According to the minutes, it also aimed to determine if supplier investments would be eligible.

Volkswagen stated that it was reviewing the most recent EV policy "in detail" and would assess a course of action in light of it.