Have someone very close who is working on the EV policy and the general sentiment inside the government is also very pro NEV at least at their level. They're well aware that the current tax structure doesn't make sense for EVs and that's why they've hired new people (including him) in the past year from the industry to help shape the future policy, specially around local manufacturing.
That said, the biggest hurdle according to him are the incumbents who are being a pain to deal with because their sales will see a direct impact against the sheer scale of Chinese brands. The big 3 still command a significant chunk of the market, and employ enough workforce that the government can't simply ignore them. And they're apparently doing their best to stifle competition from the Chinese entrants to protect their own investments.
Funny enough, you can actually see that from the recent media spree Toyota Indus CEO went on the last month by appearing on podcasts and giving "interviews". The guy straight up dodged the questions that how can Toyota charge such an exuberant price tag on an 11 year old Corolla and even said with a straight face that the Cross is at par with the likes of JOLION, HS and Atto so it's price is justified.