Budget 2026 Expectations: EV Players Seek Tax Relief & Infrastructure Funding

Auto and EV industry eyes Budget 2026 for stronger incentives, charging infra boost, GST rationalisation and policy support to accelerate green mobility adoption.

Beyond public transport, the corporate mobility segment is also looking for practical financial support in Budget 2026.

Source : Markus Distelrath/Pixabay

Show Quick Read

Key points generated by AI, verified by newsroom

Budget 2026 Expectations: The electric mobility and intercity transport sectors are placing high hopes on the Union Budget 2026, set to be presented on February 1, expecting policy measures that can speed up India’s transition toward cleaner and smarter transportation. With rising fuel costs, growing passenger demand, and increasing climate commitments, industry leaders believe the upcoming budget can set the tone for large-scale adoption of electric vehicles and modern mobility infrastructure.

Executives from the EV and public transport ecosystem are urging the government to focus on incentives, financing support, and infrastructure development to make sustainable mobility both practical and affordable.

Stronger Push For Intercity Mobility

Intercity buses remain the primary mode of travel for millions of Indians, making this segment a critical focus area for future investments. Industry stakeholders believe that modernising this network can improve safety, reliability, and environmental outcomes at the same time.

Manoj Soni, CEO, YoloBus and Easy Green Mobility highlighted the need for greater budgetary attention toward this space. He said, “As India enters the next phase of economic growth, the Union Budget presents a critical opportunity to strengthen intercity public transport systems that millions of Indians depend on every day.” He further pointed out that higher spending on road infrastructure, smart bus terminals, and digital ticketing systems can significantly upgrade passenger experience.

Policy backing for electric buses and cleaner fuel technologies is also being actively sought. According to Soni, better incentives, expanded charging infrastructure, and easier access to finance can accelerate fleet modernisation and lower long-term operating costs. Such steps are expected to support India’s net-zero ambitions while benefiting nearly 50 million daily bus passengers.

Support Measures For Corporate EV Fleets

Beyond public transport, the corporate mobility segment is also looking for practical financial support in Budget 2026. Businesses are increasingly exploring electric vehicles for employee transportation and logistics, but high upfront costs and infrastructure gaps remain key barriers.

Abhinav Kalia, CEO and Co-founder at ARC Electric said, “As India readies for Budget 2026, the electric mobility sector stands poised for a breakthrough not just in pilot projects or fleet deployments, but in mainstream commercial adoption.” He emphasised the need for enhanced incentives for charging infrastructure in commercial hubs, along with tax benefits and easier financing options for corporate EV buyers.

Industry participants are also calling for rationalisation of GST on electric vehicles and clearer regulations on battery disposal and reuse to reduce operational uncertainties.

Building Sustainable Transport Future

The expectations from Budget 2026 underline a common theme: targeted and demand-driven policies are essential to unlock large-scale EV adoption in India. From better charging networks to financial incentives and modernised intercity transport systems, the mobility sector is looking for a balanced and forward-looking approach.

If the government aligns budget priorities with infrastructure readiness and business needs, 2026 could mark a turning point for India’s electric mobility revolution.

Budget 2026 Expectations: Recycling Reforms Needed As EV Waste Mounts

Budget 2026 Defence Expectations: From AI Warfare to Exports, Industry Seeks Higher Capital Spend