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.”

Image for representative purpose only

Comments (0)

ADD COMMENT

Link Copied!

Vietnamese automotive company VinFast has expanded the role of its India Chief Executive Officer, Tapan Ghosh, to oversee operations in Indonesia, uniting the company's management structure across both regional markets.

Interestingly, Ghosh becomes Chief Executive Officer for VinFast Operations across both countries, making him the first executive from India to manage multiple markets for the Vietnamese company.

Since joining the Vietnamese brand in 2025 from Hyundai Motor India, Ghosh has managed local manufacturing setups, dealership distribution expansion and product strategies. His new responsibilities will include overseeing the development of a complete knock-down (CKD) assembly operation in Indonesia.

The dual-country manufacturing and distribution setup establishes operational hubs for VinFast across South Asia and Southeast Asia, supporting its strategy to expand production beyond Vietnam.

Comments (0)

ADD COMMENT

Link Copied!

Chinese automotive major Geely Automobile Holdings has announced changes to its board of directors and executive leadership structure, effective 18 August 2026, as part of its succession planning framework.

Li Shu Fu has resigned as Chairman of the Board and Executive Director to focus on other business commitments. He has accepted an appointment as Honorary Chairman for Life, a role outside the formal corporate governance structure. Li remains a controlling shareholder of the company and confirmed that he has no disagreement with the board regarding his departure.

On the other hand, Executive Director An Cong Hui has been appointed Chairman of the Board. The board cited An's operational experience within the group and strategic alignment with the controlling shareholder entity as factors supporting the appointment. Independent non-executive directors will continue to oversee potential conflict management protocols under Hong Kong Stock Exchange listing rules.

Further board adjustments include the resignation of Li Dong Hui, Daniel, from the role of Vice-Chairman. He retains his seat as an Executive Director. Gui Sheng Yue has stepped down as Chief Executive Officer and assumed the role of Vice Chairman while remaining an Executive Director.

Following Gui's transition, Executive Director Gan Jia Yue has been appointed Chief Executive Officer. Gan assumes responsibility for managing the group's operational activities and executing long-term business objectives.

Comments (0)

ADD COMMENT

Link Copied!

Mumbai-based automotive major Mahindra Group is preparing to test the waters of India’s nascent lifestyle pickup segment, while accelerating a deliberate international expansion and doubling down on its electric vehicle ambitions.

It was on 14^th August that Mahindra took the wraps off its much-anticipated global pickup truck christened – ‘Mahindra Lifestyler’ and ‘Scorpio Lifestyler’ (for India market), based on the popular Scorpio SUV. While the technical details and pricing have still been kept under wraps, what's known is that it will be available in three variants - Trail, Valley and Reef editions. It will be launched by April 2027 with prices starting under INR 1.95 million (ex-showroom). 

R Veluswamy, President - Automotive Technology & Product Development, Mahindra Group and Nalinikanth Gollagunta, CEO, Automotive Division, Mahindra & Mahindra, outlined a strategy rooted in what they describe as latent customer demand rather than existing market size.

“The latent demand, latent need is the most important thing,” Gollagunta said. “So far what we have seen is, it’s a compromise choice they make. Because they don’t have the right product at the right price point. So, they’re making either a compromise on the capability or making a compromise on the budget.”

He added, “We believe that the latent demand for an uncompromised choice means there’s an open space for us to play.”

Veluswamy reinforced the point by recalling the original Scorpio’s arrival. “When we first saw the car, we all were blown away, but no customer had expressed that they wanted such a car. So, to say that the pickup segment is not exist may be a statement that’s not representative of the customer. They may not know how to express it. The latent desires are always understood.”

He continued: “We have seen customers who want the pickup character and who want the SUV character and who want the 4x4 character at an affordable price point. If you put all of them together, Mahindra has the deep pickup expertise. Mahindra has the deep SUV expertise; we put all of them together, and we think it will click with the customer.”

The forthcoming Scorpio-badged Lifestyler pickup was originally conceived as a global product.

“You have to remember three years ago, this was a global pickup as we call it. This was for the global market. But in three years, we have had enough indications to tell us that there’s some latent demand in this market,” Gollagunta noted.

Responding to a query on the volume expectations, Gollagunta said, “I won’t get into the volumes to be honest. The way we are looking at it is we are the third largest automotive market in the world. We believe the market is evolving and maturing and becoming a lot more sophisticated. The problem we see is there are not enough of these choices in these markets.”

Veluswamy pointed to past surprises as evidence that the right product can rewrite expectations. “How many of us thought the 9E would have such volume? And the 9S when we launched, how many of us thought that would have that volume? It clearly tells if you have the right product for the right customer needs. They don’t look at the price. They look at the value proposition.”

He added of the XUV700: “Who in the earth would have imagined that this car will be selling at 9,000 units per month. Who would have thought?”

The Scorpio brand itself is viewed as elastic enough to support the new model. “Our sense is the Scorpio brand means a lot to different people,” Gollagunta observed.

“There are a lot of customers who have a Scorpio Classic, who tell us that I will not buy a Scorpio N. A lot of Scorpio N customers say that I don’t see myself in a Scorpio Classic. Yet the market has stretched and you have two distinct segments with very loyal customers on both sides. So, it’s hard to predict right now. Our view is there’s enough elasticity in the brand today to take a price that is very distinct in itself,” he said.

Pricing has been carefully signalled rather than fixed. “I’ve given one so that now I can have conversations,” Gollagunta explained. “The starting price is less than this, we said. It’s a conversation starter for me to have conversations with customers.”

Veluswamy clarified, “The starting price is less than that. We haven’t announced the price. We have just put a number.”

When queried about the production capacity for the upcoming Lifestyler, “Every new product comes, it comes with a capacity,” Veluswamy said. “So there is a capacity for the product, and there is an operationalisation based on the demand; you operationalise the capacity.”

The vehicle will benefit from body-on-frame technology, 4x4 expertise and technologies already proven elsewhere in the range. “We are riding on that high price point SUVs, which means high technologies that we already use in our ICE and EVs. That is what we are bringing to pickup,” he noted.

Beyond India, the company is pursuing a measured three-phase global approach.

“There is a three-phase strategy. The core markets where we have a strong legacy will continue to double down. Those markets: South Africa, Australia for sure. The second wave is the other LHD markets where we think there is significant potential for us. And we have talked about UK. If we go there, we want to go there to win. And if you are not convinced we cannot win, we will be careful about doing it. I am not in a hurry because I have a core market which is doing well. But we will go out there; the difference is we now have products which are built for the globe,” Gollagunta averred.

Veluswamy provided market context: “We sold about 235,000 units last year (2025) in Australia. And about 135,000 units in South Africa. But the majority of them are these mid-size pickups. The South African market is looking for versatility. Whereas the Australian market is looking for adventure, freedom, go anywhere, towing 3.5-tonne trailers, premium upmarket. So, it is really two different markets.”

The Indian market in the recent past has seen a slew of automakers in the passenger vehicle space introduce hybrid products. For Mahindra, the message has been clear: electrification was unambiguous.

“Our focus is electric, electric, electric. That’s it,” Veluswamy declared.

Furthermore, the company had no intention to dilute its SUV focus simply to chase EV volume elsewhere. “We play in the SUV market. So wherever there is an SUV market, we bring electric. You have to see multiple parameters. It’s not one-dimensional.”

Gollagunta added that electric powertrains are already on the roadmap for future platforms: “We did have the NU_IQ we launched last year, and we said that there is going to be electric powertrains on NU_IQ. But if we do it, it has to be in a way that we believe taps into a platform architecture.”

Veluswamy highlighted the recently introduced BE6 for its intelligence layer.

“The intelligence of the car is different from intelligent driving. Naturally, it can speak to you. You can ask many questions. It is like a teacher, a tuition teacher. That is phenomenal. It understands the context, the context reasoning. It understands natural language reasoning. You do not have to be as accurate as Alexa. That is why we say it is unmatched.”

He detailed the system’s architecture: “It goes to the cloud, and it has 17 agents, and 17 agents are working in tandem. If they have to get it from the LMM, the Gemini model, then it directly gets it.”

Simple commands remain local and immediate, while contextual or knowledge-based queries draw on the cloud. “Our electric vehicle is one of the best cyber security certified. Without cybersecurity, you cannot even bring this in,” he added.

Going forward, it will be interesting to see whether the Scorpio Lifestyler remains a niche experiment or becomes another volume surprise will depend on the next six months of customer conversations.

What is already clear is that Mahindra intends to treat both the Indian opportunity and its wider global and electric ambitions with the same methodical, brand-first discipline that has underpinned its recent growth.

Comments (0)

ADD COMMENT

Link Copied!

Honda Motorcycle & Scooter India (HMSI) Director of Sales and Marketing Yogesh Mathur has exited the company after more than two decades, sources familiar with the matter have confirmed.

Mathur joined the Japanese two-wheeler major in June 2001 and rose through the ranks to become one of its longest-serving senior leaders. At the time of his departure, he held end-to-end responsibility for sales, distribution, logistics, customer service and business planning across HMSI’s network of more than 6,500 dealer and customer touchpoints nationwide. Under his oversight, the company managed annual volumes exceeding 5 million units and a turnover of approximately INR 500 billion, spanning rural, semi-urban, urban, metro, premium and electric vehicle segments

Mutsuo Usui, Director – Sales at Honda Motorcycle & Scooter India, has succeeded Mathur, according to people aware of the development. The company has not issued any official statement on the leadership change.

Mathur’s career at HMSI progressed from executive roles to regional head across every geography in India, followed by stints as division head for marketing and business planning, operating head of sales and marketing, and ultimately senior-level expert. He also served on the company’s CSR Committee, Business Ethics Committee and Information Security Management System (ISMS) Committee.

As HMSI’s official spokesperson, he represented the company in national media for over five years.

At present, there are no further details on Mathur’s next move or the exact effective date of the transition were immediately available.

The move comes at a time when Honda Motorcycle & Scooter India is gearing up to unleash one of its most aggressive product launch roadmap compromising of 10 motorcycles and scooters, which includes 7 models and 3 refreshed variants.

The lineup spans internal combustion engine, electric and flex-fuel mobility, featuring models such as the ADV 160, CB 500, Rebel 300, Rebel 500, XR 300L, XR 300 Rally and QC3 EV. Production utilises local sourcing and manufacturing capabilities to support market expansion

Comments (0)

ADD COMMENT

Link Copied!