The Union Budget 2025-26 has been widely welcomed by industry leaders, particularly for its transformative impact on the electric mobility and start-up ecosystems. Key highlights include the exemption of basic customs duty (BCD) on 35 capital goods critical for EV battery manufacturing and tax exemptions on essential materials like lithium and cobalt, significantly lowering production costs and promoting local supply chains.
The budget also emphasised boosting the MSME sector through increased credit access and skill development, alongside measures supporting startups, gig workers and cleantech manufacturing. Investments in infrastructure, public-private partnerships and tax relief for the middle class are expected to stimulate consumer spending and economic growth.
Overall, the budget is seen as a strong step toward making India a global leader in sustainable mobility, innovation and self-reliant manufacturing.
Partner and Automotive Tax Leader at EY India Saurabh Agarwal noted, “The proposed income tax cuts could boost the middle class's spending power, potentially increasing demand for two-wheelers, three-wheelers, and small cars. Further, the government's commitment to fostering a sustainable automotive ecosystem is clearly demonstrated through its strategic initiatives, which are poised to deliver substantial benefits to the EV industry. The budget astutely emphasizes the complete exemption of Basic Customs Duty (BCD) on cobalt powder and waste, scrap of lithium-ion battery, lead, zinc, zirconium, copper, etc. These pivotal measures are designed to ensure a reliable domestic supply of essential critical minerals for manufacturing and to stimulate job creation across India.”
The Central Government has significantly increased budgetary allocations with PME E-Drive receiving INR 40 billion, auto PLI being bolstered by INR 22.18 billion and advanced chemistry cell PLI benefiting from an infusion of INR 1.55 billion. 
Commenting on the newly introduced budget, Mercedes-Benz India Managing Director Santosh Iyer said, “India has long been regarded as a niche garden with high fences; however, this budget is expected not only to enrich the garden by stimulating consumption and strengthening MSME sector, but also lowering the fences through tariff rationalisation and adoption of international practices on transfer pricing, with a clear commitment to enhanced global trade integration. This will send a strong positive signal to the industry, reinforcing confidence in the ‘India Growth Story’, paving the way for sustained investment and future expansion. The announcement of setting up of National Manufacturing Mission’s for clean technology manufacturing and support to domestic EV battery manufacturing is a positive step towards strengthening EV ecosystem. We also welcome the setting up of a high-level committee to evaluate regulatory reforms which will enhance ease of doing business in long term.”
Volkswagen India Brand Director Ashish Gupta, averred, “The Union Budget presents a forward-thinking roadmap for strengthening India’s manufacturing ecosystem with a clear emphasis on clean technology, skill development and infrastructure growth. By prioritizing these areas, along with manufacturing, India is advancing toward a circular economy—where investments, innovation, and sustainable practices drive long-term growth. Infrastructure growth through public-private partnerships and capital expenditure incentives will pave the way for India to become a globally competitive manufacturing hub.” 
Commercial vehicle players have also lauded the budget. Ashok Leyland Executive Chairman Dheeraj Hinduja noted, “The finance minister has presented a clear, growth-driven budget that aligns with the Prime Minister’s vision of fostering a competitive and resilient India with inclusive growth by investing in people, economy and innovation. Additionally, the government's strong commitment to green mobility is expected to create new avenues for innovation and growth across the country.”
Daimler India Commercial Vehicles Managing Director Satyakam Arya iterated, “The Union Budget 2025-26 will be a game changer for India and the mobility sector, helping us become a global leader in EV manufacturing and sustainable transportation. The emphasis on localising battery production will create technological advancements and generate more jobs. Also, with mining identified as one of the six domain areas for transformative reforms and the introduction of the State Mining Index, we see major growth potential for the sector in the coming years.”
EKA Mobility Chairman Sudhir Mehta said, “These different programmes demonstrate a strong commitment to sustainability, innovation and greater industrial competitiveness, setting the framework for transformative progress in a variety of critical sectors. The nation's energy revolution will be dependent on funding for small modular reactors and the government's target of 100 gigawatts of nuclear power by 2047. Long-term growth can be solidified by financial agreements that allow governments to expand their borrowing capacity, as well as indirect taxation initiatives targeted at increasing domestic value creation.” 
Two-wheeler industry
In a move to avoid protectionist signals, the government has reduced import duties on high-end motorcycles. This decision aligns with India's commitment to lowering trade barriers and could influence the premium motorcycle segment.
With electric mobility remaining the focus point of the automotive sector, the budget has made pivotal efforts for bolstering manufacturing. Drawing on that, companies operating in the EV two-wheeler space has welcomed the developments with open arms. 
Kolkata-based Motovolt Mobility Founder Tushar Choudhary said, “"The recent budget has delivered a promising outlook for India’s electric vehicle industry, especially with the reduction in BCD on capital goods related to EV manufacturing. This move will help lower production costs, making EVs more affordable for consumers and encouraging higher sales. Aligned with the National Manufacturing Mission, the budget’s focus on rationalising customs tariffs signals the government's intent to localize high-value production and reduce dependency on imports. Additionally, the exemption on critical minerals like lithium is a significant step toward easing the supply of vital components for EV batteries, further lowering costs and boosting domestic manufacturing. Efforts to localize EV components like batteries, motors and controllers will help reduce upfront costs which would further strengthen India’s EV Ecosystem giving the EV sector the ability to penetrate the Indian markets.”
Chennai-based high performance EV two-wheeler manufacturer Raptee HV’s Co-founder Dinesh Arjun said, “The Finance Minister’s focus on nurturing and investing in innovation is a commendable step toward accelerating new technologies that will shape our future. The allocation of a Deep Tech Fund will further strengthen India’s industrial ecosystem, fostering a globally competitive, tech-driven economy.”
Drawing on the same lines, Revamp Moto Chief Executive Officer Pritesh Mahajan said, “"The National Manufacturing Mission’s support for clean tech manufacturing is a game-changer for India's sustainable future. I firmly believe that this initiative will accelerate the growth of domestic EV battery and solar panel production, reducing our reliance on imports while strengthening India's position as a global leader in green technology. The additional INR 100 billion investment underscores the government’s commitment to fostering innovation, job creation and energy security.”
Welcoming the budget, Odysse Electric Founder Nemin Vora said, “We appreciate the Union Budget 2025, which underscores the government's commitment to fostering economic growth and empowering citizens. The adoption of progressive policies, particularly within the existing tax framework, is a key step in enhancing disposable income and driving consumer spending. This decision will significantly impact consumer-driven sectors, especially the two-wheeler industry. With more disposable income in the hands of consumers—particularly the middle class—purchasing power is set to rise. As a result, more individuals will be encouraged to invest in personal mobility solutions like two-wheelers.”
Associates talk
The boost towards electric mobility is also poised to impact the entire ecosystem. DriveX Founder Narain Karthikeyan noted, “The 2025 Budget is a strong step towards inclusive economic growth, bringing significant benefits across all sections of society. The increase in MSME turnover limits, along with enhanced credit access and intensive skill-development programmes will fuel entrepreneurship, business expansion and youth employment. We also welcome the government’s recognition of the gig economy, with steps to regularise support for gig workers and improve their access to credit facilities. With enhanced credit guarantee cover for MSMEs and startups, particularly in focus sectors crucial for Atmanirbhar Bharat, the budget lays a strong foundation for sustained growth and economic resilience.”
Commenting on the same lines, Taabi Mobility Limited Chief Executive Officer Pali Tripathi said, “The transformation of India Post into a large-scale logistics network, along with greater accessibility to PM Gati Shakti data for the private sector, will significantly enhance connectivity, particularly in hinterland regions. These initiatives will drive smarter freight management, optimise last-mile delivery, and make transportation more seamless and sustainable.”
On the aggregator front Rapido Chief Financial Officer Vivek Krishna said, “The Union Budget 2025-26 has proposed a review of both financial and non-financial sector regulations that are expected to help businesses perform better with lesser compliances. It reflects a bold vision for Viksit Bharat, one that empowers the gig economy, promotes sustainable mobility, and catalyses digital innovation. We welcome the social security scheme and healthcare support announced for gig workers. The e-shram portal registration and the PM Jan Arogya Yojana will be a game-changer in prioritising the well-being of gig workers, including our captains. It’s also encouraging to see the government’s effort in promoting green mobility by incentivising local EV component manufacturing.” 
Alluding to how the manufacturing push will bolster the electric mobility segment, Kinetic Engineering Managing Director Ajinkya Firodia said, “These steps noted in budget will significantly enhance India’s position as a global hub for electric mobility and clean energy technologies. In addition, the focus on expanding charging infrastructure, incentivising electric buses for public transport and ramping up domestic battery production marks a decisive move in India’s EV revolution. The continued subsidies under the FAME scheme will make EVs more affordable and accessible to consumers. This strong policy push not only paves the way for rapid adoption of EVs but will also create jobs, reduce dependence on fossil fuels and position India as a global leader in sustainable transportation.”
Drawing on the same lines, Tata Technologies Managing Director Warren Harris said, “The establishment of five National Centres of Excellence for Skilling is a pivotal move in building a future-ready workforce. This initiative resonates with our commitment to engineering a better future for India's youth through investment in in-demand training programs across Industry 4.0, IoT, and advanced manufacturing and collaborating with state governments to upgrade ITIs into technology hubs.”
TapFin Co-founder Aditya Singh said, “The budget’s emphasis on cleantech manufacturing, including incentives for electric vehicle batteries and the additional 10 GW support for grid-scale batteries, signals a significant shift for India’s electric mobility sector. Strengthening domestic production will foster innovation, reduce dependence on imports, and open new growth opportunities.”

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The German Association of Suppliers (ArGeZ), an interest group representing approximately 9,000 suppliers and supported by several industry associations, has reported that the domestic automotive supplier industry remains trapped in a deep structural crisis with no economic recovery in sight. Weak order intake, rising operational costs and mounting international competitive pressure continue to threaten industrial resilience and value chain stability.

This prolonged crisis extended into 2025, marked by a 1.1 percent drop in revenue and a 1.0 percent fall in production, the fourth consecutive annual decline. Excluding a temporary recovery in 2021, the sector has faced a structural downturn since 2019. Employment fell by 3.4 percent year-on-year in 2025, with growing job cuts underscoring the weakening state of German suppliers.

The first two months of 2026 offered no turnaround. Employment kept falling by another 3.4 percent, and production decreased by 0.4 percent. The ifo Business Climate Index for German suppliers plunged from -14.4 points in February to -24.1 points in March 2026, ending any hesitant stabilisation. ArGeZ spokesperson Christian Vietmeyer noted that only about one in ten suppliers rates their current situation as good, while just 16 percent expect improvement in the next six months.

Weak demand from key customer sectors remains the principal cause, with order intake too volatile for sustainable stabilisation. Geopolitical tensions, trade policy uncertainties and rising energy prices are compounding difficulties. International competitive pressure is increasing, as imports of iron and steel products rose about 10 percent in 2025, with even stronger growth for numerous automotive parts.

The German government is still expected to deliver bold economic transformation. High labour costs are forcing suppliers out of business and driving production shifts abroad. ArGeZ calls for longer working hours, curbing sick-leave absenteeism by abolishing phone-based sick notes and reducing non-wage labour costs to a maximum of 40 percent. Dr Martin Theuringer, Managing Director of the German Foundry Industry Association, stated that supplier management repeatedly invests in foreign plants instead of German locations, leading to a slow bleeding out of the industry.

Promised energy price reductions have not materialised. Many suppliers are excluded from electricity tax cuts. For small and medium-sized enterprises, gas prices are burdened by a national CO₂ price higher than the EU Emissions Trading System price. ArGeZ demands suspending the national CO₂ price until the European small-installation price (ETS 2) is introduced. The EU’s proposed ‘Made in Europe’ label is a step forward but must avoid bureaucracy, and technological openness beyond 2035 remains essential.

Regarding the expected introduction of the EU End-of-Life Vehicles Directive (ELVR) this summer, Michael Weigelt has demanded that the competitiveness of secondary materials be guaranteed. He called for streamlined, low-bureaucracy processes and energy cost relief for recycling companies, because only economically viable recyclates will enable international competitiveness.

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TIP Group has signed a new agreement with Verdis to supply modern, environmentally efficient waste-collection vehicles for the company’s expanding operations in Malmö. The deal includes 16 garbage trucks, featuring 12 NTM Quatro four‑compartment bodies and four NTM KG‑HL single‑compartment bodies, all mounted on Scania CNG L340 6x2 chassis.

The collaboration provides Verdis with a future‑ready fleet without major upfront investment, ensuring predictable costs and financial flexibility. TIP will deliver full‑service fleet support, managing all maintenance and lifecycle performance to guarantee strong uptime and efficient operations. This marks the beginning of a reliable partnership for waste management solutions across Sweden.

By combining modern equipment with comprehensive lifecycle care, TIP reinforces its growing role as a trusted partner in the Nordic waste management sector. The agreement allows Verdis to focus entirely on delivering high‑quality collection services while scaling capacity as operational needs change.

Christian Petersen, VP & Managing Director, Nordic at TIP Group, said, “We are proud to support Verdis with a future-proof, environmentally conscious fleet solution. This agreement highlights our capability within waste management equipment and reflects TIP’s broader role as a strong partner for heavy transport equipment across many sectors.”

Per-Eric Bjurenborg, VD from Verdis, said, “For us, the partnership with TIP Group brings real stability and efficiency to our daily operations. Their comprehensive support package reduces administrative complexity and gives us peace of mind in a sector where reliability is critical. This allows us to stay focused on providing the best possible service to the municipalities we serve.”

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Orion S.A. is preparing to demonstrate the role of its speciality carbon blacks in advancing sustainability, high-jet performance and electrical conductivity within coatings systems. The global speciality chemicals company will make these presentations at the 2026 American Coatings Show + Conference, scheduled for 5–7 May in Indianapolis.

Visitors to Orion’s Booth 1466 will be directed to three key product lines. The first is ECOLAR 50 POWDER, a bio-circular feedstock-based carbon black that has previously won industry awards. The company is also featuring COLOUR BLACK FW 310 and COLOUR BLACK FW 255, two grades recognised for their exceptional jetness in both waterborne and solvent-borne formulations. Beyond product displays, Orion will offer technical guidance on achieving effective dispersion of speciality carbon blacks in electrically conductive coating systems.

ECOLAR 50 POWDER functions as a low to medium furnace black, delivering medium jetness in mass tone applications alongside reliable tinting strength. Meanwhile, the FW 310 and FW 255 grades rank among the deepest black pigments available for automotive coatings, producing a clean and elegant finish. FW 310 achieves Orion’s highest jetness levels with a deep blue undertone, making it suitable for automotive OEM basecoats, refinish coatings and premium industrial uses. FW 255 is engineered for automotive OEM and refinish systems, providing very high jetness and a similar blue undertone in both solvent-borne and waterborne environments. An additional after-treatment step enhances its wetting and dispersion properties.

A technical presentation by Orion’s Jaelene Matos, North American Technical Marketing Manager for Coatings Systems, is scheduled for 9 a.m. on 6 May. Her talk will examine how the dispersion process influences the final conductive properties of new specialty conductive carbon blacks in waterborne and solvent-borne coating systems. The discussion will cover the fundamental role of carbon black in conductive coatings, as well as the effects of dispersion method, processing time and dosage on conductive performance. Matos will also compare the conductive behaviour of medium and high conductive carbon black grades across different coating system types.

Zack Hays, Marketing Manager for Coatings and Printing Systems in North America, Orion, said, “The colouristic properties of ECOLAR 50 POWDER compare favourably with traditional specialty carbon blacks across a broad range of coatings systems and applications, with the added benefit that it contains 100 percent biogenic raw material per 14C analysis. Since we officially launched ECOLAR 50 POWDER last year, industry response has been overwhelmingly positive. We’re very proud of introducing an industry-leading?  100 percent bio-based carbon black, and we look forward to helping our customers produce truly sustainable products, contribute to a healthier planet and promote a more circular economy.”

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Kia India has introduced Digital Passport, a new customer-centric feature aimed at improving vehicle ownership transparency. Available through the Kia Connect app under the ‘New Services’ tab, the digital tool provides a secure, data-driven vehicle health report that covers a vehicle’s complete lifecycle. Priced at INR 399 plus applicable taxes, the service is offered as a three-month subscription.

As customers increasingly seek transparency and trust in vehicle management, the automaker designed Digital Passport to solve the problem of fragmented vehicle data spread across multiple platforms. The feature consolidates essential information into a single, verified report that includes a clear health summary and an easy-to-understand vehicle health score, offering a reliable view of the vehicle’s overall condition. Key data points covered are service history, accident and repair records, driving insights and warranty status.

By bringing all essential vehicle information onto one platform, Digital Passport provides a verified, data-backed picture of a vehicle’s true state, enhancing confidence in its value. The feature strengthens engagement with the Kia Connect ecosystem while delivering convenience and peace of mind throughout the ownership journey.

Atul Sood, Senior – Vice President Marketing & Sales, Kia India, said, "At Kia India, we continuously strive to enhance the ownership experience through meaningful digital innovations. Digital Passport brings greater transparency and reliability to vehicle information, reinforcing customer confidence and trust. This initiative reflects our commitment to delivering technology-led solutions that simplify ownership and strengthen long-term relationships with our customers."

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