Industry Leaders Outline Their Expectations from the Union Budget
As India’s automotive industry braces for the Union Budget 2025, key CEOs from top auto manufacturers have shared their expectations and demands for policy interventions that could drive growth, electrification, and sustainability. From tax reforms to EV incentives, here’s what India’s top automotive executives are hoping for from Finance Minister Nirmala Sitharaman.
Mercedes-Benz India CEO’s Key Expectations for the Automotive Sector
As the Union Budget 2025 approaches, Santosh Iyer, Managing Director & CEO of Mercedes-Benz India, shares his insights on the key measures that could drive sustainable growth and enhance India’s global competitiveness.
Santosh Iyer’s Statement:
“We anticipate forward-looking measures in the upcoming budget that will foster sustainable economic growth and strengthen India’s position in the global market. A continued push for battery electric vehicle (BEV) adoption—through sustained incentives, infrastructure expansion, and R&D support—will be pivotal in accelerating India’s transition to green mobility, positioning the country as a significant player in the global BEV value chain.
Additionally, reducing trade barriers and simplifying regulatory frameworks will further integrate India into global supply chains. Any measures aimed at lowering the cost of doing business can attract fresh investments, drive the adoption of new technologies, and foster innovation.
By prioritizing these areas, the government can create a resilient, future-ready economy, reinforcing India’s standing on the global stage.”
Toyota Kirloskar Motor’s Vikram Gulati Highlights Key Expectations for Sustainable Growth
As the Union Budget 2025 approaches, Vikram Gulati, Country Head and Executive Vice President – Corporate Affairs and Governance at Toyota Kirloskar Motor, shares his insights on the government’s role in driving infrastructure growth, sustainability, and innovation in the automotive sector.
Vikram Gulati’s Statement:
“The government’s commitment to modernizing infrastructure through sustained investments has significantly boosted economic growth and helped reduce logistics costs. The Production Linked Incentive (PLI) schemes have facilitated investments in key sectors and cutting-edge technologies, enhancing efficiencies, achieving economies of scale, and strengthening the global competitiveness of Indian industries. These measures have been accompanied by a strong focus on maintaining prudent fiscal discipline.
In the upcoming budget, we hope to see continued emphasis on infrastructure spending and an expanded scope for PLI initiatives. In the automotive sector, India is on the brink of achieving the E20 (20% ethanol blending) target in record time. This will replace a significant portion of fossil fuel imports with indigenous biofuel (ethanol) sourced from Indian farmers while simultaneously reducing carbon emissions. Additionally, sales of electrified technologies are rising rapidly, signaling a shift towards greener mobility solutions.
To accelerate this transition, we urge the government to introduce merit-based policies that support and popularize a full spectrum of green technologies and alternative fuels. This approach will drive the faster and broader adoption of sustainable mobility solutions. Furthermore, budgetary measures to promote vehicle scrappage programs will not only boost demand for next-generation vehicles but also help phase out older, polluting ones.
Beyond mobility, we encourage the government to prioritize initiatives for youth skill development, MSME support, research and development, and innovation. Strengthening the education system will also be crucial in realizing the vision of a ‘Viksit Bharat’ (Developed India). A balanced budget that fosters infrastructure, sustainability, and human capital development will be key to driving India’s long-term economic growth.”
Key Expectations from Skoda Auto Volkswagen India’s CEO on Automotive Growth & Policy Support
As the announcement of the Union Finance Budget 2025 approaches, Piyush Arora, Managing Director & CEO of Skoda Auto Volkswagen India, has shared his key expectations for the automotive sector.
“The upcoming Union Budget presents a valuable opportunity to address critical needs within the automotive industry. A well-defined, long-term tax structure that accommodates diverse automotive technologies would be a significant step forward. Given the lengthy and investment-intensive nature of product development cycles, a stable and favorable taxation framework is essential. Additionally, simplifying the GST structure across various vehicle categories and components would provide much-needed clarity and support for the industry.
The Government’s Production-Linked Incentive (PLI) scheme has been instrumental in driving domestic manufacturing investments. Further budgetary support for electric vehicle (EV) infrastructure, particularly charging stations, will accelerate the shift towards sustainable mobility.
Investment in safer and more efficient road infrastructure will not only enhance connectivity but also contribute to the growth of the auto sector.
While the industry has seen steady growth, early signs of a slowdown indicate the need for budgetary measures that boost consumer disposable income, thereby sustaining demand and market momentum.
I remain optimistic that this Budget will introduce forward-thinking and practical measures to strengthen the automotive sector, reinforcing its pivotal role in India’s economic progress and environmental commitments.”
Omega Seiki Chairman Highlights Key Expectations for the EV Industry
As Finance Minister Nirmala Sitharaman prepares to present her sixth Union Budget, the electric vehicle (EV) industry is anticipating crucial policy measures that could shape its future. Uday Narang, Founder and Chairman of Omega Seiki Private Limited, shares his expectations for the upcoming budget.
Uday Narang’s Statement:
“With the 2025 Union Budget on the horizon, the EV industry eagerly awaits announcements that could significantly influence its growth trajectory. A key expectation is enhanced incentives and subsidies, particularly for the E-truck segment, which is set to revolutionize logistics and transportation. Additionally, with rising demand for electric three-wheelers as an affordable and eco-friendly mobility solution, the industry hopes for expanded incentives benefiting both manufacturers and consumers.
However, high interest rates remain a challenge, making EV purchases and infrastructure development financially burdensome. There is a strong need for government intervention to ease financing conditions, fostering widespread EV adoption across all segments.
Beyond financial incentives, the industry also seeks stronger support for charging infrastructure, particularly in rural and remote areas. Expanding charging networks is crucial for EV success in India, but requires significant investments. Measures such as tax breaks, public-private partnerships, and streamlined regulations for infrastructure development would be instrumental in driving this transformation.
With mounting concerns over climate change and air pollution, the EV sector looks forward to a budget that not only addresses these pressing challenges but also accelerates India’s transition to a sustainable, future-ready mobility ecosystem.”
DriveX Founder Narain Karthikeyan Highlights Key Expectations for the Automotive Sector
As the Union Budget approaches, DriveX shares its perspective on the key expectations from the government, particularly for the automotive industry. Founder Narain Karthikeyan outlines crucial measures that could enhance affordability, innovation, and sustainability in the sector.
Narain Karthikeyan’s Statement:
“With the Union Budget on the horizon, we anticipate forward-thinking policies that promote affordability, a business-friendly environment, and sustainable mobility.
Currently, rural demand for automobiles is rising, while urban demand is slowing. A more favorable tax regime to boost disposable income in urban areas would help balance this trend. Additionally, targeted initiatives such as interest subsidies on refurbished vehicle loans and lower GST on refurbished vehicles would make mobility more accessible to middle- and lower-income groups while reinforcing the circular economy.
Encouraging innovation and growth in the automotive sector also requires easing compliance norms and offering financial support for automotive and tech startups. Expanding Production Linked Incentive (PLI) schemes to include businesses in unorganized sectors, along with incentives for startups expanding into Tier 2 and Tier 3 cities, could drive economic inclusivity. Subsidies for rural mobility solutions would further strengthen accessibility.
Additionally, fostering job creation through skill development programs for refurbishment professionals and recognizing the contributions of gig workers can uplift the workforce. A budget that prioritizes green technology, digital advancements, and pro-business reforms will not only boost India’s automotive industry but also create a more inclusive and sustainable mobility ecosystem for all.”
Blue Energy Motors CEO Anirudh Bhuwalka Calls for Stronger Push Towards Sustainable Commercial Transportation
As the Union Budget 2025 approaches, Anirudh Bhuwalka, CEO of Blue Energy Motors, highlights key expectations to accelerate India’s transition toward sustainable mobility in the commercial transportation sector.
Anirudh Bhuwalka’s Statement:
“We stand at the cusp of a transformative era in commercial transportation, and the upcoming Union Budget presents a crucial opportunity to drive India’s shift toward sustainable mobility. Speaking at the Bharat Mobility Summit, Prime Minister Narendra Modi underscored the significance of green mobility as a cornerstone of India’s sustainable development journey. Liquefied Natural Gas (LNG), with its potential to significantly reduce carbon emissions, is not just an alternative fuel but a vital enabler of a cleaner and greener logistics ecosystem. Alongside advancements in EV technology, LNG and EVs together represent the future of commercial trucking—one that balances environmental responsibility with operational efficiency.
To make this vision a reality, the government must prioritize investments in LNG refueling infrastructure, expand EV charging networks, and introduce fiscal incentives that drive adoption. These strategic steps will not only position India as a global leader in sustainable logistics but also align with the country’s net-zero goals and enhance the competitiveness of India’s supply chain on the world stage.”
Impact on the Automobile and Lubricants Industries
As the Union Budget 2025-26 unfolds, key measures are expected to drive growth in both the automobile and lubricants industries. Navkaran Singh, Co-Founder and Managing Director of EnerG Lubricants, shares his insights on how the budget could shape these sectors.
Navkaran Singh’s Statement:
“The Union Budget 2025-26 introduces several initiatives that are poised to positively impact the automobile and lubricants industries.
For the automobile sector, the government has allocated ₹6,421.33 crore, with a notable boost to the Production Linked Incentive (PLI) scheme. The scheme’s allocation has risen to ₹3,500 crore for FY25 from ₹604 crore in FY24, strengthening manufacturing capabilities and fostering sectoral growth. Additionally, allocations of ₹2.66 lakh crore for rural development and ₹1.52 lakh crore for agriculture and allied sectors are expected to drive demand for entry-level vehicles, two-wheelers, and small commercial vehicles, particularly in rural markets.
Although the budget does not directly address the lubricants industry, it is expected to benefit indirectly from increased infrastructure investments. This will likely boost demand for industrial lubricants, particularly in construction and heavy machinery. Growth in the automobile sector also presents opportunities for conventional lubricants used in vehicles. Furthermore, initiatives supporting Micro, Small, and Medium Enterprises (MSMEs) could create favorable conditions for lubricant manufacturers and distributors within this segment.
Overall, the 2025-26 budget presents a promising outlook, fostering growth in manufacturing, rural demand, and industrial expansion. These measures are set to create new opportunities for both the automobile and lubricants industries in the coming year.”
