Budget 2026: Auto industry hopes for duty cuts, incentives to power India’s EV push

The Indian EV market is expecting a significant policy push from the upcoming Union Budget. The automakers are calling for rationalisation of duties on EV components, stronger incentives to drive consumer adoption, and greater support for localisation and charging infrastructure.Anurag Mehrotra, the managing director at JSW MG Motor India, expressed the industry's expectations for measures that accelerate EV adoption by strengthening consumer-led incentives and easing cost pressures on manufacturers. "On the electric mobility front, we expect the government to further strengthen consumer-led incentives and schemes to accelerate EV adoption," Mehrotra said, speaking to PTI, "Rationalisation of duties on EV components would be a welcome move, along with greater support for localisation of EV manufacturing."He further acknowledged the expansion of India’s charging network and noted that infrastructure gaps remain a key bottleneck for EV growth."We would greatly appreciate strong fiscal support for the expansion of charging infrastructure," he said.Toyota Kirloskar Motor's executive vice president for corporate affairs and governance, Vikram Gulati, said policy continuity and sustained backing for multiple green pathways would be critical for the long-term evolution of the automotive sector, including EVs.He urged the government to maintain its focus on infrastructure development and continue its sustained support for multiple green energy pathways to help India meet its goals of energy security and net-zero emissions.Industry leaders also emphasised the need for deeper localisation of EV technology and supply chains, arguing that it would reduce costs, strengthen manufacturing resilience, and enhance India’s competitiveness in the global EV ecosystem.JK Tyre & Industries chairman and managing director Raghupati Singhania said consistent policies that enhance affordability and improve logistics and infrastructure would have a multiplier effect across the automotive value chain, including EVs."A forward-looking, investment-led Budget will play a key role in accelerating India's manufacturing growth and reinforcing investor confidence," he further added.According to Singhania, continued investment in quality infrastructure and logistics will be essential to improving cost competitiveness, while policy measures that support exports will help India integrate more deeply into global supply chains amid evolving trade challenges.The expectations come ahead of Finance Minister Nirmala Sitharaman’s presentation of the Union Budget for the financial year 2026–27 on February 1, with the industry looking to the Budget to set the direction for the next phase of growth in India’s automotive and electric mobility sectors.