(Bloomberg) -- India’s trade minister hailed Tesla Inc.’s ties with the South Asian nation during a tour of one of the company’s US plants as the government seeks to woo investment from electric vehicle makers.  

Piyush Goyal, who visited Tesla’s factory in Fremont, California on Monday, said the company was on track to double its imports of components from India. Goyal is in the US this week to participate in regional trade meetings and was expected to meet with Tesla’s Chief Executive Office Elon Musk.

The minister’s comments come as India looks to entice the likes of Tesla and others to sell and eventually manufacture EVs in the country. The government is considering tax cuts on imports of completely-built units of electric vehicles for a period of up to five years, according to people familiar with the matter.

As part of an EV policy in the works, the government is looking at allowing international car manufacturers to import battery-powered vehicles on concessional duty rates if they commit to eventually building them in India, the people said, asking not to be identified as the discussions are private.

A final decision is yet to be taken on the policy’s contours, they said. Spokespeople from India’s heavy industries and commerce ministries didn’t immediately respond to emails seeking comment.

Goyal said on social media site X he was “proud to see the growing importance of auto component suppliers from India in the Tesla EV supply chain.” He said he wasn’t able to meet with Musk at the plant. 

In 2021, Austin-based Tesla had sought duty cuts on import of electric vehicles. It was hoping to have the rates reduced to 40% from the current range of 70%-100% for its vehicles, depending on their import value. 

Tesla is seeking to break into one of the world’s most promising auto markets where the demand for electric vehicles is rising among the country’s burgeoning middle class. For India, Tesla’s investment would aid the government’s push to increase the share of manufacturing in the nation’s GDP while also creating jobs. 

India’s electric car market is currently at a nascent stage with EVs accounting for just 1.3% of the total passenger vehicles sold last year, according to BloombergNEF. The adoption of EVs in the country has been held back by the high cost of cars, a dearth of options and lack of charging stations. 

Opening up the EV segment could speed up the adoption of cleaner transport in a country that currently has the world’s most toxic air. The government launched a $3.1 billion incentive program in 2021 to boost local EV production. 

Separately, India is also considering reducing import taxes on some electric vehicles from the UK as part of negotiations with Britain over a free-trade deal. 

--With assistance from Anup Roy and Chris Kay.

(Updates with Indian trade minister’s Tesla factory visit.)

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