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Ahead of the Union Budget 2026–27, the automobile, auto component and electric vehicle (EV) sectors are closely watching the government’s policy direction. Industry leaders believe the upcoming Budget can play a decisive role in taking India into the next phase of manufacturing growth, electric mobility adoption and global competitiveness.
According to Ravi Mehra, MD, Uno Minda, the auto component sector is expecting policies that strengthen manufacturing, encourage innovation and boost exports. He emphasised that expanding the PLI-Auto scheme to include EV-related subsystems such as sensors, semiconductors and advanced electronics is essential to increase domestic value addition. He also highlighted the need for higher R&D incentives, a dedicated innovation fund for automotive electronics and clean mobility, faster resolution of tax disputes, simplified GST and customs duties, and a stable tax regime to improve ease of doing business and unlock growth capital.
Meanwhile, Piyush Arora, MD & CEO, Skoda Auto Volkswagen India, said that following the successful implementation of GST 2.0, the industry is looking for policy stability and long-term clarity. Continued support for domestic manufacturing and higher allocation for road and transport infrastructure are critical priorities. Rationalising the inverted tax structure on electric vehicles would encourage local EV manufacturing, improve competitiveness, and accelerate India’s transition towards clean and sustainable mobility. Strengthening the overall EV ecosystem and supporting household purchasing power, he added, will be key to sustaining demand and economic growth.
Sahil Jindal, Co-founder, Trevel, believes the upcoming Budget presents an opportunity to take India’s EV journey from ambition to large-scale execution. From an operator’s perspective, faster rollout of charging infrastructure, incentives for fleet-led electrification, and easier access to long-term capital are vital. EV fleets, he noted, can rapidly drive adoption while delivering measurable environmental benefits, provided there is consistent policy support and execution-focused implementation.
According to Shivam Sisodiya, Co-founder & CEO, Bijliride, India’s electric mobility ecosystem is at a critical inflection point, with particularly strong adoption in two-wheelers and last-mile mobility. To accelerate this momentum, he stressed the importance of recognising rental, subscription and EV-as-a-service models, which make clean mobility more accessible for gig workers and small businesses. Improved access to affordable capital, neighbourhood- and city-level charging and battery-swapping infrastructure, and tax incentives for local manufacturing will be crucial to strengthening India’s EV value chain.
Similarly, Kunal Arya, Co-founder & MD, Zelio E-Mobility, believes that India’s EV transition will be driven largely by two-wheelers, where affordability and daily usability matter most. He pointed out that sustainable EV growth depends more on long-term structural support and policy stability than short-term subsidies. For Budget 2026–27, he called for component-specific PLI support for battery cells, controllers and power electronics, rationalisation of GST on electric two-wheelers, access to low-cost financing, and a clear national charging roadmap, including a target of 50,000 public charging points by 2027.
Overall, industry stakeholders agree that if Budget 2026–27 focuses on policy continuity, local manufacturing, infrastructure development and easier access to capital, India can successfully translate its EV ambitions into reality and position itself as a global hub for future-ready automotive and mobility solutions.
