Indian Auto Sector Reacts To Union Budget 2025
Shailesh Chandra, President, SIAM said, “We welcome this budget which is focused on long term sustained economic growth. The specific focus on rural prosperity and agriculture, coupled with reforms in the Personal Income Tax, is likely to have a positive effect on the Auto Industry and will help create demand. The Auto Industry is also thankful to the government for creating a high-level committee for regulatory reforms, aimed at reviewing regulations, certifications, licenses, and permissions, as this will certainly help in ease of doing business in our sector.”
Also Read : Budget 2025: Why EVs will become more affordable in India
Shradha Suri Marwah, President – ACMA, said, “The Union Budget 2025-26 is forward-looking and growth-centric, reinforcing the government’s commitment to strengthening India’s manufacturing sector and driving the transition to cleaner mobility solutions. The focus on MSMEs, innovation, exports and supply chain resilience will provide a strong impetus to the auto component industry. Further, the proposals for personal Income Tax will put more money in the hands of people thus fuelling consumption and leading to economic growth.”
Girish Wagh, Executive Director, Tata Motors, said, “The Union Budget 2025 lays out a clear roadmap for long-term transformation, driving India closer to its vision of a ‘Viksit Bharat’ with progressive policies and reforms that foster modernization, economic growth, and inclusive development. As infrastructure projects gain momentum and consumption picks up, improved roads, connectivity, and logistics will undoubtedly drive increased demand for freight and commercial transport solutions driven by both domestic demand and broader economic recovery.”
Dr Anish Shah, Group CEO & MD, Mahindra Group, said, “We commend the 2025 Union Budget for its continued support of robust consumption growth through changes in the tax structure, effectively placing more disposable income in the hands of the Indian consumer. This will encourage private sector capex to move in a positive direction. The theme of “Make in India for the world” remains a key focus in this budget, with efforts to reduce India’s manufacturing costs poised to significantly enhance the country’s global competitiveness. In addition to providing an immediate stimulus for demand and growth, the budget emphasizes long-term growth through substantial infrastructure investments and a strong focus on innovation.”
Dr Pawan Munjal, Executive Chairman, Hero MotoCorp, said, “The Union Budget 2025 fuels India’s growth engines with a bold push for manufacturing, green mobility, and rural empowerment—driving innovation, job creation, and global leadership. By prioritizing rural prosperity and establishing India as a global agricultural powerhouse, the budget fosters inclusive growth that reaches all corners of the nation. A bold push towards manufacturing excellence, supported by strategic investments in infrastructure, EV technology, and MSME growth, strengthens India’s industrial backbone. This people-centric vision strikes a perfect balance between fiscal discipline and sustainable economic growth.”
Santosh Iyer, MD & CEO, Mercedes-Benz India, 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 rationalization 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. 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.”
Jyoti Malhotra, Managing Director, Volvo Car India, said, “The Union Budget 2025-26 appears to be focused on stimulating consumer spending and fostering economic growth. Measures such as tax rationalization aim to increase disposable income and boost consumption. The government’s commitment to maintaining capital expenditure, without raising taxes, is a positive step. By focusing on demand-side incentives, without placing an undue burden on taxpayers, the budget seeks to create a favourable environment for EV growth.”
Rajeev Chaba, CEO Emeritus, JSW MG Motor India, “The Union Budget’s new tax regime introduces substantial relief for young earning professionals and this is a positive sign for all consumer-facing industries. On the automotive front, the Government’s focus on enhancing domestic manufacturing capabilities and battery production will help India’s emerging EV market and boost local manufacturing.”
Venkatram Mamillapalle, Country CEO and MD, Renault India, said, “We commend the Dhan-Dhaanya Krishi Yojana, benefiting 1.7 crore farmers, and the revised tax structure exempting income up to ₹12 lakh, which will boost consumer spending. This is expected to positively impact vehicle purchases, especially among the growing middle class. The National Manufacturing Mission strengthens ‘Make in India’ with robust policy support and execution roadmaps. By prioritising rural development, tax reforms, and clean-tech manufacturing, the budget lays a strong foundation for a greener, more prosperous future.”
Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said, “Continuous government investments in infrastructure are set to fuel sustained economic growth. Additionally, the government’s strong commitment to green mobility is expected to create new avenues for innovation and growth across the country. The launch of the National Manufacturing Mission will support the sector by providing crucial policy backing, execution plans, and a governance and monitoring framework. With strategic investments in skilling, digitization, healthcare, education, agriculture, and electrification, the budget aims to shape India’s economic trajectory in the years ahead.”
Ajinkya Firodia, Vice Chairman and Managing Director, Kinetic Engineering Ltd, said, “By fostering local innovation and ensuring cost efficiency, this budget lays the foundation for rapid industry growth and broader adoption of electric vehicles. In addition, the focus on expanding charging infrastructure, incentivizing electric buses for public transport, and ramping up domestic battery production marks a decisive move in India’s EV revolution. The reduction in customs duties on key EV components and the continued subsidies under the FAME scheme will make EVs more affordable and accessible to consumers.”
Vinod Aggarwal, MD & CEO, VECV, said, “The rationalization of custom duties on key raw materials and the reduction of inverted duty structures will enhance cost-effectiveness in domestic manufacturing. The duty exemption on capital goods for EV battery manufacturing is a welcome step toward accelerating India’s electric mobility transition. Additionally, budgetary provisions for working capital support, technology upgradation funds, and easier credit access will play a crucial role in strengthening the MSME ecosystem, ensuring its long-term growth and sustainability. The budget outlines a plan for promoting sustainable transportation through integrated infrastructure development initiative.”
Aravind Mani, CEO & Co-Founder, River Mobility, said, “The 2025 budget brings a strong push for electric vehicle manufacturing and MSME growth, both crucial for India’s automotive future. Exemptions on capital goods will help brands like ours scale faster and make EVs more accessible. The emphasis on digitization, technology adoption, and infrastructure—especially roads and transportation—will drive automotive demand.”
Shreyas Shibulal, Founder and CEO, Numeros Motors India, said, “This budget signifies a strategic shift away from traditional subsidies towards a more sustainable growth model for the EV and auto industries. By embracing the ‘Make in India’ initiative and focusing on self-reliance, we are poised to drive significant growth in EV adoption across India. The emphasis on achieving a ‘Viksit Bharat’—a developed India—through enhanced domestic capabilities will not only empower our local industries but also contribute positively to our environment.”
Narayan Subramaniam, CEO & Head of Design, Ultraviolette Automotive, said, “Increased infrastructure investment and incentives for electric mobility will strengthen our efforts to develop eco-friendly mobility solutions. As an electric vehicle manufacturer, we are particularly encouraged by the budget’s focus on enhancing the domestic production of key components such as batteries, motors, and controllers. This initiative will not only strengthen India’s EV ecosystem but also enable us to build a more resilient local supply chain.”
Madhumita Agrawal, Founder & CEO – Oben Electric, said, “The budget has key provisions for boosting the next wave of entrepreneurship in the nation, including the New Fund of Funds with a fresh contribution of ₹10,000 crore is a welcome move, following the funding winter & dry spells that entrepreneurs had to endure in the previous year. Easing credit access to MSMEs is also a crucial move and will lead to better tech upgradation and more employment avenues for the nation’s youth.”
Naoya Nishimura, CEO, India and Africa region Musashi, said, “The Union Budget 2025 marks a decisive step toward strengthening India’s EV ecosystem by accelerating the localization of critical components like batteries, motors, and controllers. The government’s commitment to expanding domestic manufacturing capabilities aligns with Musashi’s vision for innovation-driven, sustainable mobility. With these initiatives, India is poised to become a global hub for clean-tech manufacturing, reducing import dependency and fostering a self-reliant future for electric mobility.”
Mahesh Babu, CEO of Switch Mobility, said, “The exemption will enhance the competitiveness of the EV industry, helping it to grow more rapidly and become a key player in the global market. It accelerates India’s progress toward Aatmanirbharta in clean energy and sustainable mobility solutions. These measures are expected to reduce the overall cost of EVs, making them more affordable for consumers, which directly supports the government’s ambitious target of achieving 30% EV adoption by 2030.”
Anirudh Arun, Co-Founder and CEO, BluSmart Fleet, said, “We welcome the Union Budget for its strategic alignment with India’s net-zero commitments through a comprehensive four-pillar approach to sustainable mobility—manufacturing incentives, a circular economy, consumer adoption, and workforce empowerment. The strong emphasis on sustainability and accelerating the transition to clean mobility solutions is truly encouraging. This budget provides a strong fiscal framework for sustainable mobility. The focus must now shift to coordinated execution between policymakers and industry stakeholders to drive meaningful impact on the ground.”
Harinder Singh, CEO and MD, Yokohama India, said, “We welcome the government’s focus on Public-Private Partnerships (PPP) and the allocation of ₹1.5 lakh crore in interest-free loans for capital expenditure. A robust logistics and transportation network will not only enhance manufacturing efficiency but also help reduce costs and increase supply chain resilience, benefiting industries such as tyres. Additionally, the tax relief for the middle class will drive higher disposable incomes, leading to greater consumption across sectors, including automobiles. As vehicle demand grows, this will have a positive ripple effect on the tyre industry, further reinforcing the sector’s growth trajectory.”
Raghupati Singhania, Chairman & MD, JK Tyre & Industries, said, “The Union Budget 2025-26 lays a strong foundation for India’s continued economic resilience and manufacturing excellence. Thrust on green energy transition, manufacturing and ease of doing business will propel the automotive and tyre industries forward. Emphasis on clean tech manufacturing, with incentives for EV components and advanced mobility solutions, aligns well with the automotive sector’s vision for sustainability. Additionally, the measures to strengthen global supply chain integration and streamline trade regulations will bolster India’s global manufacturing competitiveness.”
Chetan Maini, Co-Founder & Chairman, SUN Mobility, said, “The proposed tax reforms aimed at the middle class are commendable as they are expected to drive demand in both essential and aspirational fast-moving consumer goods sectors. While this budget aligns with India’s broader vision for progress and positive steps on promoting clean technologies, there remains an urgent need to rationalize the GST disparity between EVs and batteries that the EV industry needs. In addition, policies to enable a level playing field for battery swapping and fixed-battery electric vehicles can further accelerate investments and adoption of electrical mobility in the country.”
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First Published Date: 01 Feb 2025, 18:17 PM IST
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