The ongoing 2025-26 financial year has so far been marked by revised GST rates on cars and the signing of a free trade agreement with the UK and, more recently, the European Union, which have lifted sentiment across the industry. With Finance Minister Nirmala Sitharaman set to present the Union Budget 2026-27 on February 1, Autocar Professional, our sister publication, spoke to leaders across the automobile sector to gauge their expectations.
- More support for road infrastructure, local EV production highlighted by experts
- GST cut on EV repairs, concessions to component makers likely: EY report
Skoda Auto Volkswagen India, MD and CEO, Piyush Arora
Local production should get constant support
Sustained support for domestic manufacturing and increased allocation for road and transport infrastructure will be key priorities. A renewed push on the next phase of customs reforms in the Union Budget, as anticipated in recent media reports, would be a timely and welcome step to further improve trade efficiency and unlock India’s full economic potential. Rationalising the inverted duty structure for EVs will strengthen domestic manufacturing and competitiveness.
JSW MG Motor India, MD, Anurag Mehrotra
Need to rationalise duties on EV components
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.
Volvo Car India, MD, Jyoti Malhotra
Incentives for global manufacturers
Rationalisation of the duty structure, particularly for the rapidly growing electric vehicle segment, along with well-calibrated incentives for global automobile manufacturers investing in sustainable mobility, would serve as strong catalysts.
Update on super app, GST cut on EV repairs also expected
PLI scheme can be expanded
As per an EY report, the Budget may give an update on the unified super app for EV users, which will offer real-time slot booking, payment integration, charger availability status and progress dashboards for tracking national deployment under the PM E-Drive scheme. Battery-recycling technology and EV charging equipment may also be brought under the Product-Linked Incentive (PLI) scheme, it added. Reduction in tax (currently 18 percent) on EV spares and repairs, and concessions to component makers were also highlighted.
