TL;DR
India's EV sector anticipates Budget 2026 to deliver continued subsidies, supply chain stability, and enhanced charging infrastructure investment to sustain rapid adoption.
As India approaches Union Budget 2026, the electric vehicle (EV) industry is expressing strong expectations for a comprehensive package of incentives and policy support. With EV sales in India reaching an all-time high of over 1.76 lakh units in 2025, marking a significant 77% year-on-year increase, manufacturers and experts believe the budget needs to further boost the adoption of green vehicles.
Industry stakeholders are urging the government to continue electric vehicle subsidies, stabilize supply chain costs, and enhance investment in charging infrastructure. These measures are seen as critical to accelerating the conversion from petrol or diesel-powered vehicles to electric passenger vehicles. Affordability, particularly in entry-level segments, remains a key concern for buyers, prompting calls for policy support to reduce costs.
Anurag Mehrotra, Managing Director at JSW MG Motor India, emphasized the need for measures that strengthen consumer-led incentives and ease cost pressures on manufacturers. The industry also seeks rationalization of duties on EV components and greater support for the localization of EV manufacturing. While acknowledging the expansion of India's charging network, he highlighted that infrastructure gaps continue to be a significant bottleneck for EV growth, thus advocating for strong fiscal support for further expansion.
