The government has not set a deadline to launch electric vehicles or to ban manufacturing of petrol and diesel cars, an official said on Wednesday.
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The country's auto industry has been caught in the middle of slowing economic growth that has led to a slump in demand for vehicles, forced plant shutdowns and large layoffs.
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Prime Minister Narendra Modi has been working to push electric vehicles in an effort to cut the country's fuel import bill and curb pollution.
In June, a government think-tank that plays a key role in policymaking had recommended that only electric models of scooters and motorbikes with engine capacity of more than 150cc must be sold from 2025.