TL;DR
Indian automakers are calling for deeper policy support, including rationalized duties, localized manufacturing, and charging infrastructure expansion, in the Union Budget 2026 to sustain EV growth.
As India's electric vehicle (EV) journey moves beyond pilot projects, the automotive industry is advocating for policy depth over mere speed in the upcoming Union Budget 2026-27. Automakers are urging the government to strengthen consumer-led incentives and schemes to further accelerate EV adoption. Key expectations include rationalization of duties on EV components and greater support for local manufacturing, which are crucial for enhancing self-reliance and improving affordability in the EV sector.
While the EV charging network has expanded significantly, the industry stresses that considerable progress is still needed, with strong fiscal support for further expansion being a priority. Additionally, the industry anticipates a clear policy roadmap and guidelines for schemes like the Sintered Rare Earth Permanent Magnet (REPM) initiative, which aims to establish 6,000 Metric Tonnes per Annum of integrated REPM manufacturing in India. These magnets are vital for EVs, and indigenizing their technology and raw materials is seen as an urgent task to reduce import intensity, especially from countries with significant trade deficits.
