India's Auto Sector Sees Major Shift: New Electric Vehicle Policy Unveiled in July 2026
In a landmark move for India's automotive sector, the government has announced a new electric vehicle (EV) policy in July 2026, designed to accelerate the adoption of clean mobility and strengthen domestic manufacturing. The policy includes incentives for EV production, charging infrastructure development, and tax benefits for consumers, positioning India as a global hub for electric vehicles.
Industry experts predict this policy will significantly boost EV sales, with projections indicating a 40% increase in electric car registrations by the end of 2026. Major automakers like Tata Motors and Mahindra & Mahindra have already announced plans to expand their EV lineups, while global players such as Tesla are reportedly exploring entry into the Indian market.
| Key Policy Highlights | Impact |
|---|---|
| Reduced GST on EVs from 12% to 5% | Lower purchase costs for consumers |
| ₹10,000 crore fund for charging stations | 50,000 new charging points by 2027 |
| Production-linked incentives for battery makers | Local battery production to meet 80% demand |
This policy is a game-changer for India's auto industry. It not only aligns with our climate goals but also creates millions of jobs in the EV ecosystem, said a senior government official.