Budget 2025: What the automotive sector needs

With the automotive industry facing a slowdown in both passenger and commercial vehicle segments, all eyes are on the upcoming Union Budget 2025-2026 to provide some much-needed respite in the form of incentives and policy support. The industry wishlist primarily consists of two things: policies that will help boost EV adoption through incentives, infrastructure and skill development and policies that will help boost consumer spending overall.

Manufacturers, however, are seeking long-term policy consistency. According to Piyush Arora, MD & CEO of Skoda Auto Volkswagen India “The product development cycles are quite lengthy and require substantial investment. Simplifying the GST structure for different classes of vehicles and components is another task”.