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Budget 2025: Here's What The Indian Automotive Industry Is Expecting
With the 2025 Union Budget just a few hours away, we take a look at just what the Indian automotive industry is hoping for when Finance Minister Nirmala Sitharaman delivers her speech tomorrow.
The 2025 Union Budget is expected to see the Government of India continue with its EV and alternative fuels push, something which was seen being promoted by manufacturers at the 2025 Auto Expo which concluded on the 22nd of January.
Here are a few thoughts from leaders of various automakers and heads of other automotive firms ahead about their expectations from the Union Budget 2025...
Santosh Iyer, Managing Director & CEO, Mercedes-Benz India stated, "We hope for forward looking measures from the budget that fosters sustainable economic growth and enhances India's global competitiveness. Continued push for BEV adoption by pursuing the existing incentives, infrastructure development and R&D initiatives will be crucial in accelerating India's transition to green mobility, positioning us as a key player in the global BEV value chain.
Reducing trade barriers and simplifying regulatory frameworks can further integrate India into global supply chain, while any additional measures that lower the cost of doing business, can result in attracting new investments and boost advent of new technologies and innovation. By prioritizing these areas, the government can create a resilient, future-ready economy, bolstering India's firm standing on the global stage."
Narayan Subramaniam, CEO and Co-Founder, Ultraviolette stated, "We are optimistic about the upcoming budget and its potential to accelerate the EV transition in India. Key focus areas like expanding charging infrastructure and making PLI schemes more accessible to startups can be game-changers for the industry. These measures will not only drive adoption but also empower homegrown innovators to push the boundaries of technology and design. At Ultraviolette, we hope to see policies that strengthen India's position as a global leader in electric mobility and foster long-term growth for advanced EV technologies."
Nagesh Basavanhalli, Vice Chairman, Greaves Cotton Limited stated, "As we look ahead to the forthcoming Union Budget, we believe that a strong emphasis on fuel-agnostic technologies, sustainability, and skill development will be essential for India's journey towards a resilient and inclusive future. Standardising charging systems across products and investing in the development of charging infrastructure in collaboration with petroleum and energy companies are critical steps to accelerate the adoption of electric vehicles.
Encouraging investments in R&D and strengthening the domestic supply chain for EV components will play a pivotal role in reducing reliance on imports and fostering innovation. Supporting a robust mobility ecosystem and advancing digital transformation can stimulate economic growth while aligning with global sustainability goals. Strategic policy measures in these areas can enable industries to innovate, create jobs, and position India as a leader in the new energy economy."
Maxson Lewis, Founder and CEO of Magenta Mobility, India's largest provider of electric mobility solutions for last-mile delivery stated, "The Union Budget 2025 is a pivotal moment for the EV logistics sector, which plays a crucial role in India's transition to sustainable transportation. Targeted incentives for commercial fleet electrification, reduced financing costs for EV logistics operators, and a more structured GST framework for EV components can significantly accelerate adoption.
Additionally, policy support for localised battery recycling and supply chain development will strengthen India's self-reliance in the EV ecosystem. With the right measures, the Budget can drive large-scale EV adoption in logistics, making clean mobility more accessible, efficient, and economically viable."
Narain Karthikeyan, Founder, DriveX said, "With the Union Budget on the horizon, we look forward to forward-thinking policies that promote affordability, business-friendly environment, and sustainable mobility. To begin with, we're seeing rural demand pick up for autos, while urban demand is slowing. A friendlier tax regime to boost disposable income in urban areas would be a good start. To make affordable mobility a reality for middle- and lower-income groups, targeted initiatives like interest subsidies on refurbished vehicle loans, and lowering GST on refurbished vehicles would be highly beneficial while reinforcing the circular economy.
Additionally, easing compliance norms and offering financial support for automotive and tech startups will encourage innovation and growth. Creating favourable policies like PLI schemes for businesses operating in unorganised sectors is one direction. Providing incentives for startups expanding into Tier 2 and Tier 3 cities, along with subsidies for rural mobility solutions, can also drive economic inclusivity.
Furthermore, fostering job creation through skill development programs for refurbishment professionals and recognizing gig workers' contributions will uplift the workforce. A budget that prioritizes green technology, digital advancements, and pro-business reforms will not only boost India's automotive sector but also make mobility more inclusive and sustainable for all".
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