To be abreast with the moves of the government, Tata Motors plans to import its Jaguar Land Rover (JLR) luxury electric cars under a new government policy that lowers import taxes for companies agreeing to set up local manufacturing, two Indian government sources said. The government aims at developing local manufacturing which is likely to provide job opportunities to the locals.

Tesla is also expected to start importing its cars to India and make an investment in the country, Reuters has reported, but Tata's plan if realised would make it the first local carmaker to opt for the policy designed to increase use of electric vehicles (EVs).

 The policy announced in March cuts import taxes to 15% from as high as 100% on some EV models if a carmaker invests at least $500 million and sets up a domestic factory within three years.

"Tata wants to import JLR (EVs) under this new policy," said one of the two government sources, who declined to be named as the company plans are confidential.

While Tata is firming up plans to import JLR EVs from the United Kingdom, it is also planning to manufacture JLR cars at a planned $1 billion plant in the southern state of Tamil Nadu.

It remains unclear which JLR cars Tata will make there.

Tata dominates India's small but growing EV market. Electric models made up about 2% of total car sales in 2023, with the government targeting 30% by 2030, even as demand in key markets such as the United States and China is slowing.

 TATA IPL tends to popularize an EV called Punch. Everyday millions see the car.