Union Budget 2026: Why India’s EV growth story now needs policy depth, not just speed

This article is authored by Ayush Lohia, CEO, Zuperia Auto.

India’s electric vehicle journey has moved well beyond the phase of pilot projects and early adopters. On city streets, in wholesale markets and across delivery networks, electric three-wheelers are no longer an exception: they are becoming the default. This quiet shift tells a larger story: clean mobility in India is now being driven as much by economics and livelihood as by environmental intent.

As the Union Budget approaches, the question is no longer whether EVs will scale, but how sustainably and how inclusively that scale will happen.

Lowering the Real Cost of Ownership

While sticker prices often dominate the conversation, the true determinant of adoption is total cost of ownership. Batteries still account for a large share of vehicle cost, and fluctuations in supply chains directly affect affordability. A sustained focus on domestic battery manufacturing and local value addition can help stabilise prices over the long term. More predictability in costs gives drivers confidence to invest, and lenders confidence to finance.

Infrastructure Where Work Actually Happens

Charging infrastructure is frequently discussed in terms of highways and city centres, but for commercial EVs, the most critical locations are different. Markets, transport hubs, warehouses and dense residential clusters are where vehicles spend their working hours. Strategic investment in charging points at these operational hotspots can do more to improve vehicle productivity than headline-grabbing corridor projects alone.

Making India a Manufacturing Partner, Not Just a Market

India’s scale makes it attractive as a consumer market, but the larger opportunity lies in becoming a manufacturing and sourcing partner for the global EV industry. A balanced customs and trade framework that encourages technology inflows while rewarding local assembly and component production can help move the ecosystem up the value chain. This is how manufacturing jobs, supplier capability and long-term competitiveness are built.

Strengthening the Supply Base

Behind every EV is a network of component manufacturers : from power electronics to chassis parts and software systems. As volumes rise, this supplier base needs access to capital, modern industrial infrastructure and export pathways. Supporting this layer of the industry ensures that EV growth translates into broader industrial growth, not just vehicle sales.

Financing the First Mile of Adoption

For many three-wheeler operators, an EV is not a lifestyle purchase, instead it is a business asset. Access to affordable credit, flexible repayment models and green financing tools can determine whether a driver upgrades or stays with older technology. Financial inclusion in EV adoption is as important as technological innovation.

India’s target of 30 per cent electric vehicle penetration by 2030 is achievable, but only if policy keeps pace with market maturity. The upcoming Budget has an opportunity to shift the conversation from incentives to institutions: from short-term boosts to long-term systems. A policy framework that recognises this role can ensure that India’s clean mobility transition is not only fast, but fair, durable and deeply rooted in everyday enterprise.