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regular-article-logo Wednesday, 28 January 2026

Budget 2026 should ease EV duties, back localisation and green mobility, auto industry says

The Finance Minister Nirmala Sitharaman will present the Union Budget for the financial year 2026-27 on February 1

Our Web Desk & PTI Published 28.01.26, 09:12 PM
Nirmala Sitharaman

Nirmala Sitharaman File picture

As Finance Minister Nirmala Sitharaman prepares to present the Union Budget, automobile manufacturers are urging policy support for electric vehicles, local technology development and multiple green-energy pathways.

Industry leaders on Tuesday said the upcoming Union Budget should focus on rationalising duties on electric vehicles, strengthening support for localisation of EV technology and continuing incentives for multiple green mobility pathways.

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Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget for the 2026–27 financial year on February 1.

“Looking ahead, we anticipate that the forthcoming Union Budget will foster the next phase of development by prioritising impactful reforms aimed at enhancing the ease of doing business, deepening manufacturing localisation, and advancing workforce skills in line with rapid technological advancements,” Toyota Kirloskar Motor Executive Vice President for Corporate Affairs and Governance Vikram Gulati said in a statement.

The company also called for continued emphasis on infrastructure creation and long-term support for clean-energy solutions.

“Maintaining sustained support for multiple green energy pathways will be crucial to achieving India’s long-term goals of energy security and net-zero emissions,” Gulati added.

JSW MG Motor India Managing Director Anurag Mehrotra said the automaker expects further enablers for infrastructure investment, especially as the logistics and mobility sectors continue to play a significant role in contributing to India’s GDP.

"On the electric mobility front, we expect the government to further strengthen consumer-led incentives and schemes to accelerate EV adoption. Rationalisation of duties on EV components would be a welcome move, along with greater support for localisation of EV manufacturing," he added.

While the charging network has expanded, there is still considerable progress to be made, Mehrotra stated.

"We would greatly appreciate strong fiscal support for the expansion of charging infrastructure," he added.

JK Tyre & Industries Chairman & Managing Director Raghupati Singhania said that for the automotive and tyre sectors, policy continuity that enhances affordability and supports rural incomes can sustain demand and create strong multiplier effects across the economy.

"A forward-looking, investment-led Budget will play a key role in accelerating India's manufacturing growth and reinforcing investor confidence," he added.

Singhania said the tyre maker is optimistic about a renewed emphasis on meaningful ease of doing business, particularly through faster approvals and more streamlined regulatory processes that can unlock private investment.

Continued focus on quality infrastructure and logistics will be critical in strengthening India's cost competitiveness and manufacturing efficiency, he added.

"In the context of evolving global trade challenges, policy measures that support exports and deepen India's integration into global supply chains will be increasingly important," Singhania stated.

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