N※N

India's Auto Industry Urges Budget Support for EVs

  //automotive-transportation.news-articles.net/co .. -auto-industry-urges-budget-support-for-evs.html
  Published in Automotive and Transportation on Thursday, January 29th 2026 at 5:53 GMT by newsbytesapp.com
      Locales:

New Delhi, January 29th, 2026 - As India prepares for the Union Budget 2026, the automotive industry has presented a comprehensive set of recommendations to the government, centering on accelerating the adoption of electric vehicles (EVs) and strengthening domestic manufacturing capabilities. The proposals, submitted earlier this week, reveal a strategic focus on reducing costs for consumers, fostering innovation, and solidifying India's position as a key player in the global EV landscape.

The core of the industry's appeal lies in a request for a reduction of import duties on critical EV components. Currently, high import tariffs add significantly to the overall cost of EVs, hindering widespread adoption despite growing consumer interest. Industry leaders argue that lowering these duties isn't simply about making EVs cheaper; it's about establishing a viable pathway to mass market penetration. "The current duty structure creates a significant cost barrier," explained Sanjay Mehta, President of the Society of Indian Automobile Manufacturers (SIAM), in a press briefing. "Reducing these duties will allow manufacturers to pass on savings to consumers, making EVs a realistic option for a broader segment of the population."

However, the industry is acutely aware of the need to balance affordability with the 'Make in India' initiative. Therefore, the proposals aren't advocating for unchecked imports. Instead, the requests are targeted at components where domestic manufacturing is either nascent or non-existent. This strategy aims to provide a short-term boost to EV production while simultaneously incentivizing the development of a robust local supply chain. The industry envisions a phased reduction of duties, coupled with clear timelines and investment incentives for domestic manufacturers to scale up production of key components like battery cells, electric motors, and power electronics.

Beyond duty reductions, the industry is also urging the government to streamline existing EV policies and provide greater regulatory clarity. While several state and central government schemes currently support EV adoption, navigating the complex web of regulations can be challenging for both manufacturers and consumers. A unified, transparent policy framework will reduce bureaucratic hurdles, encourage investment, and accelerate the rollout of EV infrastructure - a critical factor in overcoming range anxiety and boosting consumer confidence. This includes standardized charging infrastructure guidelines, simplified registration processes, and clear policies regarding battery recycling and disposal.

Recognizing that technological innovation is paramount, the automotive sector is also requesting increased government support for Research and Development (R&D) in EV technology. This isn't just about replicating existing technologies; the industry wants to foster a culture of innovation that allows Indian companies to develop cutting-edge solutions tailored to the unique needs of the Indian market. Areas of focus include advanced battery technologies (such as solid-state batteries), innovative charging solutions, and the development of localized EV platforms optimized for Indian road conditions and usage patterns. Funding for collaborative R&D projects between industry, academia, and government-funded research institutions is seen as crucial.

The emphasis on localization extends beyond component manufacturing. The industry is seeking measures to encourage the domestic sourcing of raw materials used in EV production, further reducing reliance on imports and bolstering the 'Make in India' initiative. This could involve providing incentives for the development of domestic lithium-ion battery recycling facilities, supporting the exploration and extraction of key minerals within India, and fostering partnerships between automakers and local material suppliers.

The automotive industry believes that these combined measures will not only drive the rapid growth of the EV sector but also position India as a global hub for EV manufacturing and innovation. The next few years are seen as pivotal, with the potential to fundamentally transform the Indian automotive landscape. A proactive and supportive budget will be instrumental in realizing this vision and paving the way for a sustainable and technologically advanced automotive future for India.