Industry leaders across the spectrum have reacted to Union Budget 2025-26. We bring you the highlights.
03 Feb 2025 | 3764 Views | By Autocar Pro News Desk
The automotive industry has largely welcomed the provisions of Budget 2025 intended to give a fillip to demand and encourage local production of key raw materials such as EV batteries. Here are some of the highlights.
Niraj Singh, Founder and CEO, Spinny
"The Union Budget 2025 is a ...
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The automotive industry has largely welcomed the provisions of Budget 2025 intended to give a fillip to demand and encourage local production of key raw materials such as EV batteries. Here are some of the highlights.
Niraj Singh, Founder and CEO, Spinny
"The Union Budget 2025 is a significant boost for India's startup ecosystem and the broader mobility sector. The ₹10,000 crore Fund of Funds (FFS) will enhance domestic capital availability, fostering innovation in automotive technology, digital retail, and financing solutions are the key drivers for the used car market’s growth.
Additionally, the revision of income tax slabs, with no tax up to ₹12 lakh, will increase disposable income, encouraging higher consumer spending on big-ticket purchases like cars. Support for MSMEs and startups, coupled with policies driving financial inclusion and digital infrastructure, will strengthen trust and accessibility in the pre-owned car market.
With a strong focus on economic growth, entrepreneurship, and consumer empowerment, this budget sets the stage for greater mobility adoption, affordability, and innovation in India’s evolving automotive landscape.”
Hiren Pravin Shah Founder, MD & CEO - Replus Engitech; A Subsidiary of Bhilwara Energy Limited
Owing to the Union Budget announcement, these are exciting times for the Green Revolution. The import duty cuts on EV batteries and the government's push for technology driven local manufacturing of grid scale batteries are welcome moves for Replus. This initiative aligns perfectly with our vision for an Atmanirbhar Bharat, strengthening our commitment to developing world-class energy storage solutions in India for the global market.”
Sandeep Aggarwal, Founder & CEO of Droom
“We commend the Finance Minister for coming up with a forward-looking budget and believe that it is focused on driving inclusive growth, giving a boost to India’s burgeoning MSME & Start-up sector. We particularly appreciate the expanded scope and fresh contribution of INR 10,000 CR as part of the “Fund of Funds” for start-ups. This is a huge step, when seen in the context of funding winter for start-ups and will certainly boost the entrepreneurial sentiment in the country. This development, coupled with establishment of Centres of Excellence for Skilling and AI, will further enable the next wave of entrepreneurship in the country. At the same time, the budget also recognised the contributions of MSMEs, enhancing credit access and facilitating tech upgradation. At Droom, we look forward to supporting the government’s key undertaking towards making India a global hub for manufacturing and innovation.”
Sanyam Gandhi, Whole-time Director, Chartered Speed
The government’s push for Public-Private Partnerships (PPP) in infrastructure, including a 3-year pipeline of state projects and ₹1.5 lakh crore for 50-year interest-free loans, creates strong opportunities for urban development, better infrastructure, and mobility innovations. The further push in EV manufacturing will accelerate growth in multimodal transport, clean energy, and digital infrastructure, helping to accelerate the shift to cleaner, more efficient transport networks. At Chartered Speed, we see significant potential to scale EV adoption and multimodal transport solutions through PPPs and sustainable transit initiatives. Additionally, the proposed no-income-tax slab for earnings up to ₹12 lakh will boost consumption and overall liquidity in the economy, boasting travel spends.
Atul Aggarwal, Managing Director of Sterling Tools Limited
"The Union Budget has taken commendable steps toward strengthening India’s electric vehicle ecosystem, aligning with the nation’s long-term sustainability and net-zero ambitions. The introduction of the National Manufacturing Mission will significantly boost local manufacturing by focusing on ease of doing business, technology availability, quality products, and developing a future-ready workforce for in-demand jobs. This will not only drive the growth of the EV sector but also support localization efforts, reduce dependence on imports, and create high-quality, sustainable mobility solutions for India and beyond."
Nimit Aggarwal, Founder & Managing Director, EcoEx
"The introduction of the National Manufacturing Mission and the Clean Tech Mission in the Union Budget 2025-26 will boost domestic production of green technologies while fostering an enabling environment for responsible waste management and recycling. As clean tech manufacturing scales up, the need for robust Extended Producer Responsibility (EPR) frameworks and efficient waste recycling will become even more critical. The announcement of a Deep Tech Fund of Funds to support next-generation startups is a welcome move, as it will drive innovation in sustainable technologies, including advanced recycling solutions and circular economy initiatives. Leveraging technology like AI to streamline waste collection, segregation, and processing will be essential for efficiently managing India’s complex waste ecosystem, and driving India’s green transition."
Ashish Sikka, Chief Strategy Officer, Ecom Express Limited
“We congratulate the Hon’ble Finance Minister for presenting a forward-looking Union Budget 2025-26, which lays a strong foundation for a Viksit Bharat. The reduction in taxes will boost consumer demand, creating a favorable environment for both e-commerce and quick-commerce growth. Key reforms in the logistics sector, such as Bharat TradeNet, will streamline processes, reduce bottlenecks, and enhance transparency, improving efficiency for quick-commerce and e-commerce. Support for the Make in India initiative will drive domestic manufacturing, further boosting demand for tech-driven logistics. The push for AI-driven solutions in predictive analytics and route optimization will further enhance supply chain efficiency. We appreciate the budget’s focus on gig workers by formalizing their roles, issuing them identity cards through the eShram Portal, and expanding health insurance under the Jan Arogya Scheme. This progressive approach reflects a strong commitment to their financial security and well-being."
Nitin Gupta, CEO & Co-founder, Attero
"The Union Budget 2025-26 has taken significant strides in strengthening India's clean technology ecosystem. The launch of the National Manufacturing Mission and the Clean Tech Mission, as part of the Make in India initiative, will accelerate domestic production of EV batteries, solar panels, and other sustainable solutions. This will reduce import dependency, enhance India's global competitiveness, and drive innovation, investments, and job creation while supporting the country's net-zero ambitions. The proposal to fully exempt Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery waste, and other critical minerals is a crucial step toward securing raw materials for domestic manufacturing and building a self-sufficient supply chain.
Additionally, the planned policy on recovering critical minerals from tailings will significantly benefit refining players like Attero. As India's only high-tech, end-to-end e-waste and lithium-ion battery recycler, Attero leverages its proprietary, globally patented technologies to extract over 18 critical metals in pure form, ensuring these materials are efficiently recovered and reintegrated into the manufacturing process.
These measures will directly enhance Attero's resource recovery capabilities, drive sustainability, and support India's transition to a circular economy. Furthermore, the government's focus on strengthening the domestic electronics industry and developing a national framework for Global Capability Centers (GCCs) in Tier-2 cities will unlock new opportunities for skilled professionals, infrastructure development, and industry collaboration, further boosting demand for responsible e-waste management and recycling solutions.”
Satyakam Arya, Managing Director & CEO, Daimler India Commercial Vehicles
“The Union Budget 2025-26 will be a game changer for India and the mobility sector in particular, helping us become a global leader in EV manufacturing and sustainable transportation.
The decision to fully exempt 35 capital goods essential for EV battery manufacturing from Basic Customs Duty (BCD), along with complete tax exemptions on critical materials such as Lithium and Cobalt, will dramatically reduce production costs and foster a more robust local supply chain. This emphasis on localising battery production will create technological advancements and generate more jobs. Together with the new income tax slabs, we expect higher disposable incomes and more discretionary spending power – two factors that will positively impact the overall economy.
Also, with Mining identified as one of the six domain areas for transformative reforms and the introduction of the State Mining Index, we see major growth potential for the sector in the coming years. The allocation under the National Critical Minerals Mission will also enhance domestic production, technology development and create a skilled workforce.
Given DICV’s strong commitment to sustainability, we particularly welcome and appreciate the Government's forward-thinking vision.”
Aditya Singh, CoFounder and CEO, Tapfin
"The budget’s emphasis on cleantech manufacturing, including incentives for electric vehicle batteries and the additional 10 GW support for grid-scale batteries, signals a significant shift for India’s electric mobility sector. Strengthening domestic production will foster innovation, reduce dependence on imports, and open up new growth opportunities. At TapFin, we have observed how the right incentives can enable fleet owners and manufacturers to scale sustainably. With India striving towards its green energy goals by 2030, these measures will drive the adoption of electric vehicles, create jobs, and accelerate the transition to clean mobility. As a responsible company, we are ready to help businesses capitalise on these opportunities and lead the way forward."
Vinkesh Gulati, Vice President, Automotive Skills Development Council (ASDC)
Automotive Skills Development Council (ASDC) welcomes the progressive and growth-driven Union Budget 2025-26, which strengthens India's commitment to electric mobility, innovation, and skill development. The focus on EV manufacturing, R&D, and industry competitiveness marks a significant step toward sustainable growth.
The Clean Tech manufacturing support program, emphasizing domestic value addition in solar PV cells, EV batteries, motors, and controllers, is crucial for self-reliance. The removal of Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery waste, and essential minerals will significantly reduce manufacturing costs, ensure resource stability, and accelerate EV adoption. This bold move will boost domestic production, create jobs, and enhance India's EV cost-competitiveness, paving the way for a cleaner, energy-independent future.
At ASDC, we are fully committed to aligning skill development programs with industry needs, particularly in the EV sector. Collaborating with the government, industry stakeholders, and educational institutions, we aim to build a robust pipeline of skilled professionals who can drive the automotive sector's growth.
This budget will create jobs, foster innovation, and position India as a global leader in sustainable mobility. ASDC is dedicated to playing a proactive role in realizing this vision and contributing to the nation’s progress.
FR Singhvi, President, Automotive Skills Development Council (ASDC)
Automotive Skills Development Council (ASDC) welcomes the Union Budget 2025-26, which reinforces the Government of India’s commitment to skilling, employment, and innovation, particularly in the automotive and EV sectors. This budget prioritizes future-ready workforce development, ensuring India's leadership in clean technology and advanced mobility solutions.
A major highlight is the establishment of five National Centers of Excellence, leveraging global partnerships to enhance skilling and R&D. The ₹20,000 crore allocation for innovation will accelerate advancements in electric mobility, connected vehicles, and ADAS, benefiting both OEMs and component manufacturers. Additionally, ₹10,000 crore under the National Manufacturing Mission will strengthen clean tech manufacturing, supporting EV battery and solar panel production.
Skilling initiatives have received a major boost with:
• 50,000 Atal Tinkering Labs fostering hands-on learning and innovation.
• PM Research Fellowships, offering 10,000 scholarships over five years, driving cutting-edge research in mobility and automation.
• Expanding five IITs and adding 6,500 seats to enhance access to technical education.
• 10,000 new medical seats this year (75,000 over five years) to support healthcare workforce development.
• ₹500 crore AI Centre of Excellence, integrating AI-driven mobility solutions into skilling and education.
Additionally, the Academic Bank of Credits' budget has increased to ₹16 crore, streamlining digital learning pathways for skill enhancement. Broadband connectivity in all government secondary schools and new science centers will further bridge the digital divide and enhance skill-building opportunities.
ASDC remains committed to aligning skilling programs with industry demands, ensuring a robust talent pipeline for automotive manufacturing, EVs, and emerging mobility solutions. This budget is a major step toward job creation, global competitiveness, and India’s leadership in sustainable mobility.