Finance Minister Nirmala Sitharaman is scheduled to unveil the Union Budget 2026-27 in Parliament on Sunday, February 1, 2026 at 11 AM. This marks her ninth consecutive budget presentation, with industry observers closely monitoring how the government’s fiscal strategies will bolster sectors such as electric vehicles and green mobility.
Automakers are advocating for duty adjustments, enhanced incentives, and robust infrastructure support as they aim to expedite the transition to electric mobility in India.
Highlights
EV Policy Focus Central to Auto Sector Budget Wishlist
1. Duty Adjustments on EVs and Components
The automotive sector is appealing to the government to revise duties on electric vehicles and their components, including batteries and powertrain systems, to lower costs and facilitate the shift towards EV manufacturing. Emphasis on localising EV technology and enhancing manufacturing capabilities are crucial requests, alongside continued backing for various green energy routes within the automotive industry.
2. Clarity and Ongoing Incentives for EV Adoption
Automakers are anticipating ongoing consumer-driven incentives and programmes to bolster EV uptake. This includes calls for clear policy directions and sustained support to ensure that EV adoption does not falter as initiatives like FAME or PM E-DRIVE approach their sunset periods.
3. Support for Infrastructure Development
Industry leaders have underscored the necessity for increased backing for the expansion of charging infrastructure, which remains inconsistent despite recent advancements. A more extensive network of public and private charging stations is viewed as essential for making EV ownership easier and enhancing consumer confidence.
4. Business Facilitation and Localisation Focus
From the sector’s viewpoint, the Budget should prioritise improving the ease of doing business, further localisation of manufacturing, and skills development in line with ongoing technological advancements. A more stable policy environment is regarded as pivotal for attracting long-term investments in EV manufacturing.
5. Wider Duty Cuts and Incentives
Overall, the automotive industry is hopeful that Budget 2026 will provide duty reductions on EVs and associated components, along with specific incentives, to accelerate India’s ambitions in electric mobility. These anticipations highlight the sector’s belief that financial measures will play a fundamental role in increasing EV adoption.