Subhechcha Ganguly 
With the automotive industry grappling with slowdowns in both the passenger and commercial vehicle segments, all eyes are on the upcoming Union Budget 2025-2026 for crucial support in the form of incentives and policy reforms. The industry’s primary demands include measures to accelerate electric vehicle (EV) adoption through targeted incentives, infrastructure development, and skill enhancement, as well as policies aimed at boosting overall consumer spending.
Currently, the PM e-Drive scheme, which is set to run until March 31, 2026, offers a subsidy of Rs5,000 per kWh, capped at Rs 10,000 per electric two-wheeler. However, this incentive applies only to vehicles registered in FY 2024-2025, and those purchased in FY 2025-2026 are eligible for a rebate of just Rs 5,000. Critics argue that the incentives, particularly for electric four-wheelers (E4Ws), are insufficient to spur meaningful growth in the sector. The PM e-Drive scheme, with a total budget of Rs10,900 crore over two years, primarily targets two-wheelers, three-wheelers, hybrid ambulances, and trucks, leaving many in the EV market dissatisfied with the current support.
Manufacturers are emphasizing the urgent need to strengthen EV infrastructure, especially in Tier-1 and Tier-2 cities. Industry leaders stress that standardizing charging systems across different products and partnering with petroleum and energy companies to develop widespread charging networks are crucial steps in driving the adoption of electric vehicles.
