Automotive industry associations such as the Society of Indian Automobile Manufacturers (SIAM), the Federation of Automobile Dealers Associations (FADA) and the Automotive Component Manufacturers Association (ACMA) have described the union budget as progressive and growth-oriented, with strong potential to boost vehicle sales across segments through increased consumer spending power and manufacturing support.
Pune: Automotive industry associations such as the Society of Indian Automobile Manufacturers (SIAM), the Federation of Automobile Dealers Associations (FADA) and the Automotive Component Manufacturers Association (ACMA) have described the union budget as progressive and growth-oriented, with strong potential to boost vehicle sales across segments through increased consumer spending power and manufacturing support.
The key announcements included a Clean Tech support program, customs duty exemptions on 35 capital goods for battery production, and incentives for domestic manufacturing of motors, controllers, and key components.
“As the auto industry transitions into cleaner powertrains, in line with the PM’s vision on sustainable mobility, it will specifically benefit from the National Manufacturing Mission, which supports clean tech manufacturing for batteries, motors and controllers,” said Shailesh Chandra, President at Society of Indian Automobile Manufacturers.
He said the exemption of critical minerals (e.g. Cobalt, Lead, Zinc etc.), scraps of Lithium-ion batteries, and 35 additional capital goods from customs duty, will help create a strong EV ecosystem in the country.
Federation of Automobile Dealers Association President C S Vigneshwar said the budget is a well-balanced and growth-oriented one that prioritizes middle-class spending, rural prosperity, and MSME empowerment.
He said rural initiatives in the budget, including the Dhan-Dhaanya Krishi Yojana and increased Kisan Credit Card limits, were seen as potential drivers for rural vehicle demand.
FADA predicted these measures would boost sales of tractors, small commercial vehicles, and two-wheelers in rural markets.
Vigneshwar also said the increased income tax exemption limit to Rs 12 lakh would directly stimulate demand across vehicle segments.
"It is a forward-looking and growth-centric budget, reinforcing the government’s commitment to strengthening India’s manufacturing sector and driving the transition to cleaner mobility solutions,” said Shradha Suri Marwah, President at ACMA.
She said the focus on MSMEs, innovation, exports and supply chain resilience will provide a strong impetus to the auto component industry.
“The proposals for personal Income Tax will put more money in the hands of people thus fueling consumption leading to economic growth,” she noted.
Santosh Iyer, MD & CEO at 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 the 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, he pointed out.
“By focusing on demand-side incentives, without placing an undue burden on taxpayers, the budget seeks to create a favorable environment for EV growth,” said Jyoti Malhotra, MD at Volvo Car India, adding that the budget was focused on sustainable economic development.
