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 ADAS Show, touted as one of India’s major automotive future mobility events, has been rescheduled to 12 February 2026 from the originally planned 12 December 2025.

The postponement has been due to the prolonged heavy rains in the Pune region, which have hampered the completion of the ADAS TEST CITY infrastructure.

The event will be held at the ADAS TEST CITY within ARAI’s Mobility Research Centre in Takwe, Pune, which is a proving ground designed for the validation of Advanced Driver Assistance Systems (ADAS) and autonomous vehicles. Organisers noted that achieving the required precision for the track surface and infrastructure before December 2025 was not possible despite continuous effort.

The show, organised by Aayera, will feature live ADAS testing demonstrations by ARAI using its instrumentation. The event will also see automakers, Tier-1 suppliers and technology innovators showcase their solutions at India’s first ADAS smart city.

Syed Fareed Ahmed, Director, Aayera, said, “This extended timeline opens doors for expanded collaborations with global ADAS and autonomous technology companies, offering a larger and more robust platform for live track demonstrations, product launches and international partnerships.”

What’s more, Israel-based Foresight Automotive has also confirmed its participation at the event, where it showcases its solutions designed to provide accurate, real-time detection in complex environments for both commercial and passenger vehicles.

It will present its perception capabilities using live camera streams from both visible-light and thermal cameras. The demonstration will focus on generating depth maps and high-density 3D point clouds, which supply detailed spatial information to enhance obstacle detection and segmentation.

The company states its scalable platform is built specifically for India’s diverse conditions, from heavy urban congestion to rural roads and varying weather, supporting current Advanced Driver Assistance Systems (ADAS) needs while enabling future vehicle automation.

Annat Himmel, Vice-President of Research and Development, Foresight, will participate in a panel discussion titled ‘ADAS for the Indian Market – From Premium to Mass Adoption’ on 12 February 2026.

Oren Bar-On, Co-Chief Executive Officer, Foresight Automotive, said: “ADAS Test City provides an important platform to showcase how advanced perception technology can enhance road safety in India. We are excited to demonstrate how our 3D perception solutions not only support today’s ADAS capabilities but also lay the groundwork for the next generation of autonomous vehicles, unlocking safer and smarter mobility for the future. Foresight looks forward to strengthening collaborations with Indian OEMs, Tier-One suppliers, and technology partners to support India’s growing ADAS ecosystem.”

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Toyota Kirloskar Motor, one of the leading passenger vehicle manufacturers, has announced that 100 members of its workforce will travel to Japan to participate in the Global Skill-Up Training (GST) program at Toyota Motor Corporation.

The initiative aligns with the Government of India’s Skill India Mission and the Technical Intern Training Program (TITP), a framework between the Governments of India and Japan for skill development and talent exchange.

The Global Skill-Up Training program in Japan is an 11-month program, combining classroom sessions with on-the-job training. It focuses on Toyota’s core principles, while also preparing trainees with Japanese language, culture and civic responsibility to prepare for global integration.

The automaker, an NSDC-approved Sending Organisation, has facilitated the overseas training of over 1,000 youth to countries including Japan, Jordan, Qatar and Slovakia.

G Shankara, Executive Vice-President, Finance and Administration, Toyota Kirloskar Motor, said, “We at Toyota Kirloskar Motor are deeply committed to nurturing globally competitive talent from India. The Global Skill Up Training Program is more than just a learning opportunity; it is a journey to experience excellence, discipline, innovation, and respect on a global stage. Through this initiative, we aim to empower our youth with world class technical expertise and the values that define Toyota’s culture, while contributing to the Government of India’s Skill India vision. Together, we aspire to make India a global hub for people, solutions, and automobiles, and together we will make that vision a reality.”

Dr. Sharanaprakash Rudrappa Patil, Minister for Skill Development, Government of Karnataka, said, “We are proud to see our youth getting access to this global opportunity with Toyota. This program aligns strongly with our vision to position Karnataka as a hub for advanced skills while empowering rural talent to access world-class career opportunities.”

Sonal Mishra, Additional Secretary, Ministry of Skill Development & Entrepreneurship (MSDE), Government of India, said, “The collaboration between MSDE and Toyota under the TITP framework represents India’s growing role as a trusted global source of highly skilled professionals. This international apprenticeship opportunity will accelerate India’s contribution to global value chains and enable our youth to build future-ready careers.”

Till date, Toyota Kirloskar Motor has trained and empowered over 140,000 youth across India through its multi-tier skilling initiatives, including the Toyota Technical Training Institute (TTTI) model.

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Uber for Business, the enterprise division of Uber, has appointed Rituraj Chaturmohta as the Senior Country Manager for India & South Asia.

In his new role, Chaturmohta will lead the division’s growth strategy, focusing on strengthening partnerships with organisations, enhancing enterprise mobility solutions and driving innovation in corporate travel and employee transportation.

Chaturmohta joins Uber with experience in marketplace and platform businesses. He previously served as Head of Sales and Business Development at Airbnb.

Eric Lee, Regional General Manager and Head of Uber for Business - APAC, said, “We are delighted to have Rituraj join our leadership team to drive Uber for Business’ growth and partnerships in India and South Asia. His experience in building and scaling platform businesses, combined with his understanding of the Indian market will be instrumental in strengthening our enterprise offering.”

Rituraj Chaturmohta, Senior Country Manager, Uber for Business, India and South Asia, said, “I am thrilled to join Uber for Business to lead India and South Asia, one of Uber’s most dynamic growth markets. Uber for Business is reimagining how businesses move - with scale, sustainability, and customer centricity at the core. My focus is to deepen Uber’s relationships with our business clients, build tailored mobility solutions that drive measurable ROI, and make Uber for Business a growth partner for every company operating in this region.”

Uber for Business manages travel, meals, and commute programmes for over 200,000 organisations worldwide. In India, the division currently assists over 8,000 organisations with solutions for business travel, daily commutesand employee shift transportation.

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The German Association of the Automotive Industry (VDA) has assessed the draft of the 2030 Charging Infrastructure Master Plan, calling for a coherent, cross-departmental 'Overall Charging Strategy' to accelerate the expansion of charging infrastructure.

Hildegard Muller, President, VDA, said, “In order to further accelerate the expansion of charging infrastructure for vehicles, increase user-friendliness and ensure charging prices, a cross-departmental 'Overall Charging Strategy' is necessary. Against this background, the VDA fundamentally assesses the draft of the 2030 Charging Infrastructure Master Plan as good.”

The VDA supports the draft's proposals to increase e-mobility through streamlined approval procedures, grid expansion, charging prices through transparency and a focus on charging infrastructure for trucks and buses on highways and at depots.

However, the association outlined areas requiring work:

• Multi-Unit Buildings: The VDA demands that the EU Building Directive requirements for charging infrastructure at parking spaces be implemented into law without delay. It stressed that the pooling of charging points across locations, as mentioned in the draft, would weaken EU requirements and must be rejected.
• Commercial Vehicles: While welcoming the commitment to expand the charging network for trucks, the VDA noted that the still inadequate availability of charging points represents an obstacle to the ramp-up of commercial vehicles and buses. It also stated that the draft fails to address the segment of light vehicles, demanding measures to support the development of charging infrastructure in urban areas.
• Power Grids and Taxation: The VDA highlighted that Germany's power grids are not equipped for the energy transition. It called for the expansion to be oriented towards demand and for a uniform, digital process for grid connection applications. Furthermore, the VDA demands that electricity tax, network charges and concession fees be eliminated when energy is fed back into the supply network (vehicle-to-grid) to establish bidirectional charging.
• Charging Prices: The VDA reiterated that charging prices are necessary for the market ramp-up of e-mobility. It called for the electricity tax for e-mobility to be reduced to make charging electricity less expensive, noting that the draft 'falls short of the coalition agreement' on this point.

The VDA also urged the government to advocate for targets in the Alternative Fuels Infrastructure Regulation (AFIR) at the level, stating that the AFIR targets are not to the market ramp-up of e-mobility in Europe.

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