Indian Electric Vehicle Sector Anticipates Significant Policy Support in Upcoming Union Budget
The Indian electric vehicle market is poised for a major policy push as industry leaders eagerly await the upcoming Union Budget for the financial year 2026-27. With Finance Minister Nirmala Sitharaman scheduled to present the budget on February 1, automakers across the country are voicing their expectations for measures that could transform the EV landscape.
Industry Leaders Call for Comprehensive EV Policy Framework
Anurag Mehrotra, the managing director at JSW MG Motor India, has articulated the industry's collective expectations for the budget. "On the electric mobility front, we expect the government to further strengthen consumer-led incentives and schemes to accelerate EV adoption," Mehrotra stated in an interview with PTI. He emphasized that rationalization of duties on EV components would be a welcome move, along with greater support for localization of EV manufacturing within India.
Mehrotra further acknowledged the ongoing expansion of India's charging network while highlighting that infrastructure gaps remain a significant bottleneck for EV growth. "We would greatly appreciate strong fiscal support for the expansion of charging infrastructure," he added, pointing to the critical need for comprehensive charging solutions across the country.
Policy Continuity and Green Energy Pathways
Vikram Gulati, executive vice president for corporate affairs and governance at Toyota Kirloskar Motor, stressed the importance of policy continuity and sustained backing for multiple green pathways. He noted that such measures would be crucial for the long-term evolution of the automotive sector, including electric vehicles. Gulati urged the government to maintain its focus on infrastructure development and continue its support for various green energy initiatives to help India achieve its goals of energy security and net-zero emissions.
Localization and Manufacturing Resilience
Industry leaders have consistently emphasized the need for deeper localization of EV technology and supply chains. They argue that enhanced localization would:
- Reduce manufacturing costs significantly
- Strengthen India's manufacturing resilience
- Enhance the country's competitiveness in the global EV ecosystem
Raghupati Singhania, chairman and managing director of JK Tyre & Industries, highlighted the importance of consistent policies that enhance affordability and improve logistics and infrastructure. He noted that such measures would have a multiplier effect across the entire automotive value chain, including electric vehicles.
Investment-Led Growth and Global Integration
"A forward-looking, investment-led Budget will play a key role in accelerating India's manufacturing growth and reinforcing investor confidence," Singhania emphasized. According to his assessment, continued investment in quality infrastructure and logistics will be essential to improving cost competitiveness in the EV sector.
Singhania further pointed out that policy measures supporting exports would help India integrate more deeply into global supply chains, particularly important amid evolving international trade challenges. The industry views the upcoming budget as a critical opportunity to set the direction for the next phase of growth in India's automotive and electric mobility sectors.
Budget Expectations and Industry Outlook
The collective expectations from the EV industry include:
- Rationalization of duties on imported EV components
- Stronger consumer incentives to drive adoption
- Enhanced support for charging infrastructure development
- Policies promoting localization of manufacturing
- Measures supporting export competitiveness
As the budget presentation approaches, the entire automotive sector watches with anticipation, hoping for policy measures that will accelerate India's transition to electric mobility while strengthening the country's position in the global automotive market.
