Top News

India’s electric vehicle (EV) market is gaining momentum as consumers increasingly look for cleaner and cost-effective mobility options. With the Union Budget 2026 set to be presented on February 1, expectations are high that the government could take decisive steps to accelerate EV adoption. Finance Minister Nirmala Sitharaman is widely expected to announce measures that may bring much-needed relief to the middle class, particularly buyers of entry-level electric cars.

Leading automobile manufacturer Tata Motors has placed strong demands before the government ahead of the budget. While the company acknowledges that premium and high-end electric vehicles are witnessing steady growth, it points out that the affordable, entry-level EV segment continues to struggle. Tata Motors believes targeted incentives for budget-friendly electric cars could boost demand and benefit middle-class consumers. The company has also urged the government to extend greater support to fleet operators, including taxis and commercial electric vehicles, to strengthen large-scale adoption.

At present, the Centre is promoting electric mobility through the PM E-DRIVE scheme, which has been allocated a substantial outlay of ₹10,000 crore. However, the scheme mainly focuses on fleet and commercial vehicles, offering limited benefits to private electric car buyers. Industry experts suggest that if Budget 2026 expands the scope of this scheme to include passenger vehicles owned by individuals, it could significantly reduce the effective cost of electric cars.

There are multiple policy levers the government could use to make electric vehicles more affordable. A reduction in GST on EVs, along with enhanced subsidies, could immediately lower prices. Additionally, easier access to financing—such as lower-interest loans for electric vehicles—would encourage consumers to shift away from petrol and diesel cars. Experts also expect the budget to allocate additional funds toward expanding charging infrastructure, a key concern for potential EV buyers.

Policy decisions announced in Budget 2026 could reshape India’s EV landscape. Greater incentives and infrastructure support would enable manufacturers to invest in new technologies and scale up production. As volumes increase, production costs are likely to fall, making electric cars more accessible to a wider section of society. Beyond economic benefits, this shift would also support India’s long-term goals of reducing pollution and promoting green energy.

If the budget delivers on expectations, affordable electric vehicles could soon become a common sight on Indian roads—signaling a major transformation in the country’s mobility story.