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Union Budget 2026 expectations: Policy-boosting the auto sector

The PM E-DRIVE Scheme is powering the transition to Net Zero, having incentivised over 24.79 lakh e2Ws and 3.15 lakh e3Ws as of July 2025, and has provided Rs 500 crore incentive for electric trucks—a first in India.

Union Budget 2026-27: How to drive stability and growth in India’s auto sector

​​India’s EV transition has now reached a stage where policy stability matters more than new incentives. OEMs, fleet operators, and suppliers are making multi‑year commitments to localisation, product development, and charging ecosystems.

Article image for: Budget 2026: Customs duty relief boosts EV sector; 4,000 e-buses for Purvodaya states
Budget 2026: Customs duty relief boosts EV sector; 4,000 e-buses for Purvodaya states

The Union Budget 2026-27 extends customs duty exemptions on capital goods for lithium-ion battery manufacturing, fostering a robust EV ecosystem. Increased capital expenditure and support for e-buses and rare earth corridors are expected to boost domestic production and green mobility initiatives.

Article image for: Budget 2026: Auto & Components Get Policy Continuity and Longer-Run Relief
Budget 2026: Auto & Components Get Policy Continuity and Longer-Run Relief

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