Budget 2026 Expectations: Auto Industry Seeks Support For Low-Speed & Shared EVs

EV industry urges Budget 2026 to fix GST gaps, boost charging infrastructure, and back shared, low-speed mobility to make electric transport scalable across cities.

Together, these expectations reflect a broader industry view that Budget 2026 should prioritise ecosystem readiness.

Source : Freepik

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Key points generated by AI, verified by newsroom

• Industry calls for Budget 2026 to strengthen EV ecosystem, not just buyer incentives.
• Focus urged on shared, low-speed EVs and rationalizing GST on battery services.
• Budget should boost charging infrastructure and component localization for scalability.

Budget 2026 Expectations: As the Union Budget 2026 approaches, voices from India’s electric mobility sector are urging the government to recalibrate its approach to incentives and infrastructure. While previous policy measures have successfully encouraged electric vehicle adoption, industry leaders believe the next phase must address structural gaps that affect shared mobility, charging readiness, and taxation.

Stakeholders say the focus should now shift from only encouraging EV buyers to strengthening the ecosystem that enables large-scale adoption, especially in urban environments where congestion and pollution remain pressing concerns.

GST And Policy Gaps Around Low-Speed EVs

RK Misra, Co-founder and President, Ecosystem Partnerships at Yulu, said Budget 2026 offers “an important opportunity to strengthen shared and low-speed electric mobility as a core pillar of clean transport.” He noted that current EV policies largely favour personal vehicle ownership, leaving out low-speed electric vehicles that power last-mile connectivity and delivery operations in cities.

Misra also highlighted taxation hurdles that impact innovative business models. “While EVs purchased with fixed batteries attract 5% GST, battery-as-a-service models are taxed at 18%, with no refund on input tax credits, leading to significant capital blockages,” he said. He called for GST rationalisation and inclusion of such vehicles within subsidy and fleet conversion mandates to improve accessibility and scalability.

Charging Infrastructure And Localisation In Focus

From an infrastructure perspective, Hari Krishna, Founder and CEO at Green Drive Mobility, expressed hope that the Budget will continue the push for clean transportation through targeted support for charging networks and EV fleets. He said incentives and financing support for operators can “significantly accelerate adoption across commercial and shared mobility segments.”

Prince Arora, Partner at BDO India, echoed the sentiment that the EV sector’s growth will now depend more on supply-side readiness than buyer subsidies. “Budget 2026 should focus on the charging infrastructure, battery recycling, and production of components within the country,” he said, adding that stronger infrastructure can gradually reduce reliance on subsidies.

Together, these expectations reflect a broader industry view that Budget 2026 should prioritise ecosystem readiness, rational taxation, and support for shared electric mobility to make clean transport more practical and scalable across India.

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