Countdown to Budget 2025: What’s in Store for EV Sector?

With the clock ticking to the announcement of the Union Budget 2025, the electric vehicle (EV) industry eagerly anticipates the government's initiatives to address existing challenges and promote growth. The forthcoming budget presents an opportunity for the Indian government to reinforce its commitment to sustainable transportation.

The EV industry looks forward to implementing measures that support domestic manufacturing, expand charging infrastructure, and provide consumer incentives—aligning with India's goal of achieving a 30 percent EV market share by 2030.

Some key recommendations from the industry include reviewing the PM E-DRIVE scheme, reducing GST rates across the EV sector, introducing targeted subsidies, and developing alternative financing options to improve affordability. Additionally, there is a growing focus on enhancing domestic battery production, expanding charging infrastructure, and supporting the electrification of last-mile delivery.

One of the primary concerns remains the need for financial incentives and accessible financing solutions to encourage wider EV adoption.

Industry Leaders Expectations on Budget 2025

Sharing some of their key expectations, pioneers of EV industry have come forward with their own standpoints and beliefs on the upcoming Budget 2025.

Expressing his views on the same, Chandrasekar Krishnamurthy, Global Engineering Director, Systems, Software and Engineering Excellence, BorgWarner, stated, “The Indian EV industry is optimistic about Union Budget 2025, expecting measures to drive adoption and achieve the government’s 30 percent EV market share target by 2030. Key demands include a uniform 5 percent GST across EVs, batteries, and charging services, subsidies to boost domestic battery manufacturing, centralized consumer incentives, and increased funding for charging infrastructure. Continued support for initiatives like the Production Linked Incentive (PLI) and FAME schemes is essential to reduce costs, strengthen local supply chains, and decrease reliance on imports. The union budget’s focus on these areas will be crucial to creating a favorable environment for the EV sector’s growth in India.”

“Despite the pivotal role played by the low-speed e-MaaS (electric mobility as a service) segment in advancing EV adoption and improving air quality, it remains excluded from subsidies. Given that the segment has repeatedly proved its product-market fit for urban mobility — especially in quick commerce and food delivery — this must change. We call on the Central Government to support shared low-speed e-MaaS fleets by encouraging States to adopt ambitious electrification targets for intracity logistics and by promoting demand for such services through Central schemes. The EV sector also grapples with a critical shortage of skilled mechanics, electricians, and battery technicians. Directing national skilling programmes toward these areas would greatly benefit the e-MaaS segment, which requires substantial human resources to meet the growing demand for shared mobility,” said Amit Gupta, Co-founder & CEO, Yulu.

“Additionally, the GST policy for e-MaaS must align with India’s sustainable energy goals. The disparity in tax treatment between EVs with fixed and swappable batteries results in significant capital blockages for e-MaaS firms. For example, 6-7% of Yulu’s capex gets blocked in the form of GST input tax credits. The government should unlock these funds, enabling e-MaaS players to expand their fleets and energy infrastructure in the interest of users and cities,” added Gupta.

Niranjan Nayak, MD, Delta Electronics India, stated,” We want Union Budget 2025, to focus on driving India’s transition to a greener, more sustainable economy. At Delta Electronics India we are particularly keen on seeing robust measures aimed at accelerating the growth of the EV sector, which plays a pivotal role in reducing the country’s carbon footprint. We are positive about the upcoming budget and are expecting it to offer good incentives to facilitate the growth of EV infrastructure, particularly charging networks, which is an essential element for such wide adoption. One of our major expectations is the implementation of financial incentives and tax rebates that would promote both public and private investments in EV charging infrastructure. This would form a good foundation for the adoption of EVs throughout the country. Furthermore, we expect to see more focus on public-private partnerships, which will help ease the process of charging station rollouts, especially in tier-2 and tier-3 cities where infrastructure development has been relatively slow.”

“We also look forward to increased funding on R&D initiatives that push energy-efficient technologies, especially in making renewable integration with the infrastructure for EVs. This will not only meet the objectives of Delta in supporting an enhanced greener India but most importantly ensure long-term sustainability and innovation. We are looking forward to a budget that not only supports the EV ecosystem but also puts India at the forefront of global sustainable energy and mobility. And at Delta, we will be committed to actively playing a part in this transformation, building a sustainable future for India,” expressed Nayak.

Uday Narang, Founder and Chairman, Omega Seiki Private Limited, elaborated,” As the 2025 Union Budget approaches, the electric vehicle (EV) industry is eagerly awaiting announcements that could significantly shape its growth trajectory. Industry experts are hoping for increased incentives and subsidies, especially for the E-truck segment, which is poised to revolutionize logistics and transportation. With growing demand for electric three-wheelers, which provide an affordable and eco-friendly transportation alternative, the industry anticipates the government will focus on expanding incentives for both manufacturers and consumers. However, the challenge of high interest rates continues to weigh on both consumers and businesses, making it harder to finance EV purchases and infrastructure development. There is a strong expectation that the government will introduce measures to ease financing conditions to foster widespread adoption across segments.”

“In addition to financial relief, the EV industry is pushing for enhanced support for charging infrastructure, particularly in rural and remote areas. Expanding EV charging networks is vital to ensure the success of electric vehicles in India, but significant investments are needed. To achieve this, stakeholders hope to see the introduction of tax breaks, public-private partnerships, and streamlined regulations for infrastructure development. With growing concerns around climate change and air pollution, the EV sector looks forward to a budget that not only addresses the current challenges but also accelerates India's transition to a sustainable and future-ready mobility ecosystem,” added Narang.

Rohan Dewan, Co-Founder & CEO, LeafyBus, said, “As we look forward to the upcoming budget, we should expect several measures that could drive the adoption of electric vehicles (EVs) in the commercial transport sector. Direct subsidies for EV heavy vehicles could help reduce the upfront costs for operators, encouraging more widespread adoption. Tax incentives, such as road tax exemptions, would also support this transition by reducing operational costs for EV operators. We hope the budget includes subsidies and grants for commercial EV buses, similar to the FAME II program, to promote growth in this sector. Additionally, low-interest loans for EV buses would make it easier for bus operators to expand their fleets.”

“Investing in infrastructure is essential, and the budget should allocate funds to develop dedicated charging stations for commercial EV buses along major routes. This would alleviate the current charging infrastructure challenges and help improve EV buses' viability in daily operations. A dedicated fund for EV buses, along with a credit guarantee scheme offering low-interest loans to bus operators, would provide further financial support to the sector. A long-term EV policy that offers stability will be crucial to maintaining momentum for EV adoption. Lastly, as EV heavy vehicles are currently more expensive than their ICE counterparts, reducing taxes on the import of EV components, such as battery cells, would help lower procurement costs and make EV adoption more affordable for operators," discussed Dewan.

Kamlesh Kaushik Co-Founder and CEO of Mufin Green Infra, stated, "With the upcoming Budget, we expect measures that will help accelerate India’s transition to electric mobility. A focus on expanding charging infrastructure in underserved areas through viability gap funding, grants, and rebates for homeowners would be beneficial. To address the high upfront costs of charging stations, we hope for increased subsidies and tax incentives, such as accelerated depreciation and electricity tariff exemptions. Additionally, reducing import duties on EV components and offering incentives for local manufacturing will support growth. Investments in modernizing the grid to meet rising EV demand and support for battery swapping infrastructure, particularly for logistics, are important areas of focus. To support the success of the EV policy, the Budget should include incentives for fleet operators, funding for local manufacturing, and support for R&D in EV technologies. Creating a seamless EV charging network with interoperable systems and digital platforms will also be critical for the overall growth of the EV ecosystem."

Kapil Garg, MD, Mufin Green Finance, commented, “The Union Budget 2025 should prioritize EV adoption by supporting NBFCs in providing financing solutions to overcome high upfront costs. Key recommendations include including EV financing under RBI's Priority Sector Lending guidelines, which would lower borrowing costs by up to 2-3 percent, granting tax exemptions on TDS for NBFCs to improve cash flow, and introducing government-backed refinance options through SIDBI. Additionally, allocating INR 10,000 crore for charging infrastructure is crucial to address range anxiety. These measures will strengthen the EV financing ecosystem, accelerate mobility, and support India’s environmental and economic goals.”

"As India accelerates towards sustainable mobility, the Union Budget 2025 presents a pivotal opportunity to propel the electric vehicle (EV) industry forward. We anticipate measures such as reducing the GST on EV batteries from 18 percent to 5 percent, granting infrastructure status to charging stations to facilitate easier financing, and introducing performance-linked incentives for manufacturers to boost domestic production. These initiatives would address affordability and infrastructure challenges, fostering greater consumer adoption of EVs. At LML, we are committed to leveraging these policy advancements to deliver innovative, eco-friendly mobility solutions that align with India's vision for a greener future,” added Dr. Yogesh Bhatia, MD and CEO, LML.

Dev Arora, Founder and CEO, Alt Mobility, discussed, “As we approach Budget 2025, the EV industry is hopeful for policies that will drive transformative and inclusive growth, enabling sustainable mobility. A critical expectation is the inclusion of financing for electric two-wheelers and three-wheelers under priority sector lending, which would directly support gig-economy workers and enhance their livelihoods. Additionally, providing GST refunds or interest for leasing companies would alleviate working capital challenges and boost confidence in the sector. We also believe there is a pressing need for policies promoting carbon tax credits to be introduced to provide incentives for EV adoption. A clear carbon tax credit policy would boost confidence in the industry and help accelerate the transition to sustainable mobility in India. This could be enabler for both consumers & businesses. Another critical area for consideration is the Battery-as-a-Service (BaaS) model, which has gained traction as a scalable solution for affordable EV adoption. The current uncertainty surrounding the tax applicability of BaaS solutions limits the optimum potential of this model. A better clarity on the tax framework for BaaS as a model could boost EV adoption in the country. Furthermore, we urge the government to introduce tax benefits for investments in EV R&D, making it on par with other industries. This would incentivize innovation and accelerate the development of homegrown EV technologies. While the GST rate on charging equipment is relatively low, the higher GST on charging services remains a bottleneck in the development of charging infrastructure. Addressing this disparity is crucial for scaling EV adoption, as it directly impacts the availability and affordability of charging solutions across the country.

“Budget 2025 presents an opportunity to address barriers pertaining to EV adoption, enabling companies like Alt Mobility, specializing in EV leasing and lifecycle management, to scale solutions that align with India’s clean mobility goals. Strategic fiscal policies can unlock the potential for a robust EV ecosystem and accelerate the country’s transition to sustainable transportation,” commented Arora.

Anagh Ojha, Co-founder and CTO, Urja Mobility, said, “As we approach Budget 2025, the EV sector eagerly anticipates measures that will propel the adoption of sustainable mobility whilst addressing existing challenges. Batteries, which constitute nearly 50 percent of an EV’s total cost, remain a significant burden on end users due to the current GST rate of 18%. At Urja Mobility, we hope the government will focus on simplifying GST structures and addressing inverted tax issues. A uniform GST rate of 5% across EVs, batteries, components, and charging infrastructure would significantly reduce costs and encourage growth in this space and also catalyze the faster adoption of electric vehicles. Focused subsidies and incentives for battery-as-a-service (BaaS) models would make EVs more accessible by lowering the upfront costs for businesses and consumers. Bundled services such as maintenance and pay-per-use models offer flexibility and affordability, which are essential to expanding EV adoption across underserved markets.”

“We also hope for policies that encourage interoperable charging infrastructure and green financing innovations, including carbon credit systems, to streamline fleet operations and financing. Investments in AI-driven credit risk assessment and real-time energy management systems would further enhance the efficiency of EV leasing models. By addressing these priorities, Budget 2025 can pave the way for a more affordable, sustainable, and accessible EV ecosystem, accelerating India’s transition to green mobility. Battery leasing and Energy-as-a-Service (EaaS) solutions, which we champion at Urja Mobility, have the potential to redefine EV adoption,” stated Ojha.

Anand Mimani, CEO, GreenLine Mobility Solutions Ltd., expressed, “India's logistics sector holds immense potential for green growth, and the upcoming budget must prioritise initiatives to fully unlock this potential. To drive long-term sustainability, it is essential to incentivise the adoption of electric vehicles, accelerate the development of sustainable infrastructure, and support the integration of digital technologies that enable more efficient and eco-friendly logistics operations. These strategic measures will not only help reduce emissions but also significantly enhance the global competitiveness of Indian businesses, positioning them for long-term success in a rapidly evolving and sustainability-driven world.”

“GST reforms, including reducing GST on hydrogen, bringing natural gas under the GST framework, and ensuring uniform rates for renewable energy equipment, will simplify tax structures and lower project costs. Investments in EV infrastructure, a robust FAME III initiative, and additional incentives for EV manufacturers and consumers can strengthen India’s e-mobility journey. Furthermore, subsidies for energy storage, smart grid technologies, and DISCOM modernization will be critical for grid stability and efficient renewable energy integration. Policy measures to bolster domestic oil and gas exploration and green hydrogen infrastructure can further enhance energy security and sustainability,” commented Raju Kumar, Partner and Energy Tax Leader, EY India.

Subhabrata Sengupta, Partner, Avalon Consulting, said,” There is some need for reassurance in terms of longer-term policy direction, especially given the uncertainty between FAME II withdrawal and PM e-Drive. We expect most of the focus to be around public transport and conversion of maximum number of travel kms to EV rather than just getting EVs on road. The only area where industry has a demand is uniform 5 percent GST across battery and EV. However, this would mean clear distinction between EV batteries and other types of batteries. However, focus should be on policy stability rather than shiny new policies every budget.”

Kunal Sethi, CEO of The Detailing Mafia, explained, "In the upcoming budget, the industry is eagerly anticipating crucial reforms that can unlock the true potential of the sector. The auto sector is awaiting simplification and rationalization of GST classifications for auto components. They are expecting a streamlined GST classification to help create a more competitive environment for all stakeholders. Aimed at easing compliance and enhancing the efficiency of the sector, it will have a cascading effect on supply chain, including businesses where cost structures are influenced by the tax. Likewise, in order to boost domestic manufacturing, Production Linked Incentive (PLI) scheme with more transparency and accountability in the allocation of incentives is expected. Along with this, industry players are also looking forward to policies focused on addressing the challenges impeding the growth of the sector and more developments are expected, giving impetus to electric vehicles in the sector.”

Kshiteej Mishra, Practice Leader, Mobility, Energy and Transportation at Praxis Global Alliance, mentioned, “EV industry advocates for GST parity on batteries, currently taxed at 18 percent, compared to 5 percent for EVs. A uniform rate would streamline costs across the value chain and reduce the overall cost of EVs by 5 percent-10 percent. Similarly, lowering the GST on solar manufacturing components, currently taxed at 12 percent-18 percent, could significantly enhance the affordability of solar energy. This move would encourage greater consumer adoption, boost domestic manufacturing, reduce reliance on imported technologies, and potentially increase solar installations by up to 15 percent. A budget of INR 10,900Cr over the next five years is recommended to boost the adoption of Electric Vehicles (EVs), set up charging infrastructure, and foster the growth of an EV manufacturing ecosystem in India. This funding would support the development of 46,000 charging stations by 2030, focusing on underserved areas. It would also provide financing incentives by granting infrastructure status to charging stations, lowering borrowing costs for investors. Additionally, promoting public-private partnerships would expedite network deployment and enhance service quality. These measures are crucial to achieving 30 percent EV penetration by 2030, driving clean mobility, and reducing fossil fuel reliance.”

Akash Gupta, Co-Founder and CEO, Zypp Electric, said, “Electrification of last-mile delivery is an essential step toward India’s ambitious environmental, economic, and social goals. By fostering the transition to electric vehicles, India can reduce its carbon footprint, lower fuel costs, reduce oil dependency, and create millions of green jobs in the process. To successfully scale the electrification of last-mile delivery, we recommend continuing allocating budget for electric vehicles, including two - and three-wheelers by mandating logistics to go 100 percent electric by 2030, under budget 2025. The same GST structure that currently applies to EV purchases should be extended to last-mile logistics services which will push corporates to go for EV led logistics organically. We also propose implementing a per kilometer or per kg CO2 subvention scheme to incentivize aggregators to expand their EV fleets through government programs like Gati Shakti, FAME II, PLI, etc. Specifically, a per-kilometer or per-CO2 emission subvention would provide an incentive for usage, in addition to the current incentives for purchasing EVs. Similarly, continued support is essential, especially until advanced chemistry cells (ACC) are locally available, which is why the PLI ACC scheme was introduced. With strategic government support, industry collaboration, and continued technological advancements, the shift to a fully electrified last-mile delivery sector will not only help India achieve its Net Zero target by 2070 but also position it as a global leader in sustainable transportation.”

“As India navigates the evolving landscape of mobility, Budget 2025 is expected to address potential challenges in the electric mobility sector this year. The industry envisions a budget that simplifies tax structures across vehicles and components, reduces the GST on EV batteries, and streamlines refund processes for EV manufacturers. Addressing delays in PLI disbursements and easing value addition norms could significantly boost the participation of domestic players in component manufacturing, reducing reliance on imports. The industry hopes for a uniform 5 percent GST across all EV components and charging infrastructure to lower costs and foster growth. Support for sustainable energy storage and fast charging solutions will not only benefit EVs but also facilitate renewable energy integration. Advanced Battery Storage Systems (BSS) will enhance the energy independence of mobility. Prioritizing Charge Point Operators (CPOs) under priority sector lending will accelerate the deployment of charging networks. Additionally, classifying charging infrastructure as essential constituent of the 'infrastructure industry' can unlock affordable and accessible financing for such emerging real estate developments within cities and highways. After getting nod from parliament in 2024 highly awaited e-highway upgradation is all set to make its debut this year in India with National Highways for Electric Vehicle (NHEV) pilot project. Intending to upgrade 5500 km Bharatmala & Sagarmala routes in PPP mode after 3 successful technical trials (Delhi-Agra, Delhi-Jaipur and Chennai-Trichy) on intercity electric cars, busses and trucks to boost interstate freight and electric mobility in India. Budget 2025 is expected to earmark substantial infrastructure funds to meet such demand outlays to accelerate Indian ambitions to upgrade its 6000 km freight corridor and expressway in e-highways like Germany aims at 4000 km. Long-term support for the development and adoption of high-quality, long-lasting battery technologies is crucial to ensure self-reliance and reduce dependency on imports. Recently, with the issuance of new Power Ministry guidelines in January 2025 for the installation and operation of battery swapping and charging stations, the government aims to foster the 'Battery as a Service' (BaaS) business model and nationwide Battery-to-Grid (B2G) deployments. But Climate Financing in budget is pivotal for deployment of capital intensive swappable battery infra to store energy and return it to the grid for energy management and grid stability,” added Abhijeet Sinha, Project Director, NHEV (National Highways for Electric Vehicles).

Shalya Gupta, CEO, Credifin Limited, explained, “Climate change is a pressing concern, and the finance sector has a crucial role to play in addressing it. One of the key expectations is the expansion of the Green Bond Market, with policies that promote the issuance and adoption of green bonds for funding electric vehicle (EV) infrastructure and other sustainable projects. Additionally, there is a growing need for a Carbon Credit Trading Framework, which would reward companies investing in eco-friendly initiatives, encouraging sustainability-driven business practices. The EV market in India is set for significant growth, yet the high initial cost of EVs remains a major barrier for many consumers. To make EV adoption more accessible and affordable, several measures are anticipated in the upcoming budget.”

“First, an enhancement of subsidies under the FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme is expected, ensuring higher financial incentives for both commercial and personal EV buyers. Additionally, tax benefits for EV loans could further ease the financial burden on consumers, making ownership more attractive. Investment in charging infrastructure is another critical area that requires attention. Increased allocation for EV charging stations, particularly in Tier-2 and Tier-3 cities, can significantly boost consumer confidence in transitioning to electric vehicles. Moreover, a reduction in GST rates on EV batteries could lower overall ownership costs, making EVs a more economical choice for consumers. The expansion of fast-charging infrastructure across urban and rural areas is also vital. Investments in fast-charging stations would help mitigate range anxiety, one of the primary concerns for potential EV buyers. Additionally, offering incentives to lower the cost of charging infrastructure would promote the widespread availability of affordable charging facilities, further accelerating EV adoption. By implementing these measures, India can drive a sustainable transition towards electric mobility while fostering a greener and more resilient economy,” continued Gupta.

Hyder Khan, Director and CEO, Godawari Electric Motors, elaborated, “The Indian EV industry stands at a pivotal moment as we approach this year's Union Budget. At Godawari Electric Motors, we welcome the government's proactive initiatives, such as the proposed 80% subsidy for EV fast chargers under the PM E-Drive scheme, which promise to significantly alleviate range anxiety and accelerate the adoption of EVs. However, sustaining this momentum requires a phased transition as subsidy regimes draw to a close. While recent developments underscore the sector's potential for long-term self-reliance, interim support is essential to bridge the gap. We urge the government to introduce policies that incentivize local manufacturing of critical EV components, including batteries and powertrains, to strengthen domestic capabilities. Rationalizing GST rates on EVs and components, especially battery-swapping solutions, can further enhance affordability and accessibility. In addition, strategic investments in robust EV charging infrastructure, particularly in semi-urban and rural regions, along with extended tax benefits for EV financing, will ensure EVs remain within reach for a wider audience. By addressing these critical areas, the upcoming budget can not only reinforce India's position as a global leader in sustainable mobility but also lay a strong foundation for a self-sufficient and thriving EV ecosystem.”

Samarth Kholkar, CEO & Co-Founder, BLive expressed, "As we head into 2025, the Budget represents a critical opportunity to accelerate India’s transition to electric mobility, especially in the two-wheeler segment, which underpins last-mile delivery and accounts for over 60% of urban transportation needs. Government subsidies and supportive regulations have already driven the adoption of over 1 million electric two-wheelers in the previous year, signaling transformative progress. To sustain this momentum, investments in charging infrastructure and innovative financing solutions are essential to bridge critical gaps, enabling seamless integration for riders and enterprises. Transitioning to electric two-wheelers could cut urban carbon emissions by up to 40% annually and reduce operational costs by as much as 30 percent for businesses, presenting a win-win for sustainability and economic growth. We urge the government to continue prioritising green mobility initiatives, empowering businesses and individuals to embrace sustainability, drive efficiency, and build a resilient, globally competitive future for India."

Narain Karthikeyan, Founder, DriveX discussed, "In 2025, we are excited about the potential for growth in India's pre-owned two-wheeler market. As a prominent player in the mobility ecosystem, DriveX anticipates hearing about new government policies in the 2025 Budget for the pre-owned two-wheeler industry, which is predicted to reach USD 10 billion by 2026. We expect policies that control prices and encourage transparency and vehicle quality will benefit both the industry and consumers. Investing in projects that offer digital platforms for the automobile industry can enhance consumer experiences and make it easier to buy, sell, and maintain vehicles. Incentives for tech-driven and environmentally friendly mobility solutions will also influence the future of the automotive sector, fostering convenience and confidence among all stakeholders."

Rajesh Gupta, Founder & Director, Recyclekaro mentioned, "As India moves towards a more sustainable future, the Union Budget 2025 is a key moment to boost the country's renewable energy and electric mobility sectors. We hope to see strong policy support and tax incentives that encourage innovation in clean energy solutions like solar, wind, and energy storage, while also prioritizing the growth of domestic manufacturing for green technologies. Simplifying regulations, alongside increased funding for renewable energy R&D and grid integration, can help India maintain its position as a global leader in sustainable energy. Additionally, as the EV market rapidly grows, the budget must address critical needs in the EV battery and recycling sectors. Policies that promote the development of advanced battery manufacturing, establish robust recycling networks, and support circular economy initiatives are crucial for a self-sufficient and sustainable electric vehicle ecosystem. Strengthening research and encouraging collaboration between public and private sectors in the battery supply chain will not only reduce our reliance on imports but also pave the way for India to become a global leader in clean innovation".

Dinkar Agrawal, Founder, CTO & COO, Oben Electric, said, “The Union Budget 2025 is a critical opportunity to address key challenges in India’s EV transition. To achieve the ambitious target of 30 percent EV penetration by 2030, it’s crucial to tackle both manufacturing and consumer-centric challenges. Simplifying the GST structure with a uniform 5 percent tax across EVs, components, and charging infrastructure is essential to reducing costs and fostering growth. Additionally, resolving the inverted GST structure on raw materials will ease working capital pressures and encourage sustainable manufacturing. Performance-linked incentives for battery innovation and indigenous component manufacturing can further strengthen India’s Make-in-India push, positioning the country as a global leader in EV technology. On the consumer front, initiatives like reduced interest rates on EV loans and targeted subsidies can make electric vehicles more accessible, bridging the affordability gap.”

“As India’s electric mobility sector gears up for an era of unprecedented growth, the Union Budget 2025-26 will play a critical role in shaping its trajectory. To ensure a sustainable future, we at ZELIO E Mobility believe that the government must introduce long-term subsidies akin to the FAME scheme, which will not only support the industry’s expansion but also encourage widespread consumer adoption of electric vehicles. Consistent policy backing will give manufacturers the confidence to invest in innovative solutions and scale production. We also urge the government to provide subsidies for the establishment of EV manufacturing plants. Facilitating this capital-intensive infrastructure will enable India to emerge as a global leader in EV production, stimulating local economies and fostering technological advancements. Simplifying access to financial services from banking institutions is another vital need of the industry. More accessible lending schemes and flexible credit options will allow EV manufacturers to expand their operations and bring high-quality products to market at a faster pace. Notably, we request a reduction in GST on spare parts from the current 28% to a more realistic range of 5-12 percent. This adjustment will substantially reduce production costs, allowing manufacturers to pass on the benefits to consumers, thereby further accelerating the adoption of electric vehicles,” added Kunal Arya, Co-Founder & Managing Director, ZELIO E Mobility Ltd.

Anshul Gupta, MD, OPG Mobility, expressed, “With sustainability and the reduction of carbon footprints becoming critical priorities, the EV industry in India is witnessing unprecedented growth. The rising preference for e-scooters, e-bikes and electric 3-wheelers as eco-friendly alternatives is rapidly gaining traction, particularly in metro cities. As we approach the Union Budget 2025, we are optimistic about witnessing transformative reforms and policies that will shape the future of electric mobility in India. Addressing infrastructure gaps, supply chain inefficiencies, and high manufacturing costs must take center stage to make EVs more affordable and accessible to the masses. We urge the government to extend robust financial support through subsidies, tax rebates, and investments in public charging infrastructure. Facilitating private sector participation in building a comprehensive EV ecosystem will be pivotal. Empowering tier 2 and tier 3 cities with affordable mobility solutions, such as electric two-wheelers and three-wheelers, can significantly accelerate EV adoption across diverse demographics. Furthermore, introducing stringent emission standards, fuel efficiency benchmarks, and incentivizing manufacturers to focus on charging stations, battery-swapping services, and enhanced after-sales support will fortify the EV manufacturing ecosystem. With these initiatives, India can position itself as a global leader in sustainable mobility, driving a greener and more inclusive future for all.”

Bharath Aitha, Vice President of Marketing, eInfochips elaborated, "At eInfochips, we believe that prioritizing three key areas will pave the way for India's technological advancement and economic resilience. First, technology for sustainability must be a focus, with policy actions that accelerate climate-tech initiatives. Targeted incentives for green-tech innovation, energy-efficient computing, and sustainable semiconductor manufacturing will not only position India as a leader in green technology but also drive long-term economic and environmental sustainability. Second, AI for Bharat is essential to unlocking the full potential of digital transformation. To ensure technology reaches the heart of India's underserved sectors, AI, IoT, and data-driven platforms must be tailored to key industries such as agriculture, MSMEs, and public health. These innovations can drive large-scale impact, fostering inclusive growth and bridging socio-economic divides. Third, ensuring equal access to digital opportunities is vital. India's vast talent ecosystem remains one of its greatest strengths, and scaling digital upskilling programs across Tier 2 and Tier 3 cities will be key to empowering the next generation of innovators and entrepreneurs. By fostering remote work opportunities and digital literacy, we can create a more equitable and dynamic workforce."

"As we look to the future, these priorities will be instrumental in shaping a resilient, inclusive, and future-ready economy. At eInfochips, we are committed to supporting this transformation through cutting-edge solutions that align with national priorities and global aspirations," commented Aitha.

Nehal Gupta, Founder and Managing Director, Accelerated Money For U, said, "India is at a turning point in its transition to sustainable mobility, and the next budget offers a critical chance to accelerate this change. EVs can be more affordable for both individuals and businesses with more support under the PM E-drive scheme. Lowering the GST on EVs, batteries, and charging infrastructure, as well as providing low-interest EV loans through government-backed credit programs, can further democratize adoption and encourage small businesses and middle-class customers to join the green movement. For industries like ride-hailing, public transit, and logistics, fleet electrification is equally important. Fleet operators can drastically cut emissions and operational expenses by receiving targeted cash incentives. Additionally, current car owners can participate in the green transition without buying new EVs by providing financial assistance and incentives for the refit of conventional vehicles with electric drivetrains. India can take the lead in the global electric mobility movement, lessen its reliance on fossil fuels, and guarantee a sustainable future for all by implementing these all-encompassing initiatives."

Sandeep Aggarwal, Founder & CEO of Droom, shared, "As we move closer to the unveiling of Union Budget 2025, at Droom, we would appreciate policies that will give a push to drive India's digital transformation, especially in the automotive sector. The previous budget announcements have been forward-looking in giving a boost to emerging technologies. And we expect this year's budget to focus on boosting indigenous capabilities in AI and data science. These are going to be crucial frontiers in making vehicle buying and selling more transparent, affordable, and efficient. Furthermore, we'd look forward to measures that will bolster the used vehicle market in the country, such as tax rebates from eco-friendly vehicles, simplified GST structure for automatic services, etc. These measures will be critical in empowering platforms like Droom to offer more convenience and invoke more trust amongst our consumers, while contributing in meaningful ways to the nation's economic growth and development."

Prashant Vashishtha, Chairman and Managing Director, Sokudo Electric India, discussed, “At Sokudo, we’re excited about the Union Budget 2025-26 and its strong focus on growing the electric vehicle ecosystem. It’s great to see the government making EVs a priority, it shows their commitment to a cleaner, greener future, which is something we’re passionate about. This focus on EV infrastructure isn’t just good for the industry; it’s great for people who are looking for practical and sustainable ways to get around. For us, it means we can keep improving our scooters and make  them even more accessible and efficient. It’s inspiring to see such a clear vision for sustainable mobility, and it gives us even more motivation to innovate and make EVs the first choice for everyone. This budget isn’t just about policy; it’s about real change, and we’re proud to be part of it.”