Driving Green: Automakers Urge for Eco-Friendly Policies in Budget 2025-26

Automakers are calling for government policies that promote sustainable mobility through merit-based support for green technologies and EV infrastructure in the upcoming Union Budget. Industry leaders highlight the need for measures that boost consumer disposable income and simplify the automotive tax structure to counter slowing growth.

Automakers in India are rallying for government intervention to promote eco-friendly policies in the Union Budget 2025-26, urging a focus on green technologies and alternative fuels. The industry seeks merit-based policies to facilitate sustainable mobility and EV infrastructure.

As the Indian automobile sector faces signs of slowing growth, stakeholders emphasize the importance of increasing consumer disposable income and simplifying taxes for different automotive technologies. Measures to encourage vehicle scrappage and increase adoption of newer, less polluting models are also being advocated.

Industry voices like Toyota Kirloskar and Skoda Auto Volkswagen India are pushing for long-term visions to enhance tax structures and make EVs more accessible. The call is for strategic budget allocations to ensure the sector continues to innovate and contribute to economic progress, despite global uncertainties.

(With inputs from agencies.)