Union Budget 2025: Automakers Call for Policy Reforms to Accelerate Sustainable Mobility

Automakers are urging the government to introduce merit-based policies to support green technologies and alternative fuels while allocating resources to expand the electric vehicle (EV) ecosystem in the upcoming Union Budget. With early signs of slowing growth in the automobile sector, industry leaders emphasize the need for measures to boost consumer disposable income and sustain momentum in the sector.

“We request the government for appropriate merit-based policies that support and help in popularising a full range of greener technologies and alternative fuels, thereby helping in faster and greater adoption of multiple sustainable mobility solutions,” said Toyota Kirloskar Motor's Vikram Gulati. He also highlighted the importance of vehicle scrappage initiatives to drive demand for newer, less-polluting vehicles.

Skoda Auto Volkswagen India MD & CEO Piyush Arora stated, “A long-term vision for favorable tax structure catering to different automotive technologies would certainly benefit the industry.” He emphasized the need for a simplified GST structure for vehicles and investments in EV charging infrastructure.

Echoing similar sentiments, Volvo Car India MD Jyoti Malhotra said, “We hope the budget will prioritize measures to boost consumer spending, accelerate EV adoption, and invest in skill development programs.”

The auto sector also seeks incentives to make EVs accessible for individuals and businesses, as highlighted by WTiCabs CEO Ashok Vashist. According to ICRA’s Shamsher Dewan, “ICRA expects the Union Budget 2025-26 to focus on measures fostering growth, innovation, and sustainability.”

The upcoming Union Budget is crucial because automakers demand industry reforms to link manufacturing expansion with sustainable mobility objectives.