India, Dec. 8 -- Tata Motors is pressing Indian officials not to lower import taxes of 100% on electric vehicles and to protect domestic industry and its investors, as the government reviews Tesla's plans to enter the market, people with direct knowledge said.

As India tries to boost domestic manufacturing and EV adoption, Tesla is proposing to set up an Indian factory, but is demanding lower import taxes for electric cars. India is working on a new policy to cut import taxes on EVs to as low as 15% for companies committing to some local manufacturing. The policy could allow Tesla to set up its India factory to make its proposed $24,000 car, while importing its more expensive models with lower tax.

Tesla's strategy is a departure from i...