New Delhi: India’s automobile industry has broadly welcomed the Union Budget 2026-27, calling it a growth-oriented roadmap with a clear push for manufacturing, localisation and clean mobility. According to senior executives of major automobile companies, higher capital expenditure and targeted incentives for EVs, semiconductors and critical minerals could strengthen demand and supply chains.
Tarun Garg – MD & CEO, Hyundai Motor India Limited
“Further building on the mega GST 2.0 reforms, the Union Budget 2026–27 presents a long-term focused roadmap that accelerates India’s rise as a global manufacturing hub and Atmanirbhar Bharat. Focus on the rare earth corridor, EV Battery and Electronics manufacturing, MSME empowerment, inclusivity and AI investments position India for global leadership. The strong push for tourism, rural growth and enhanced regional connectivity will further spur economic activity and open new avenues for advanced mobility, logistics and transportation solutions.”
Shailesh Chandra – MD & CEO, Tata Motors Passenger Vehicles Ltd
“We welcome the Union Budget 2026–27. The decision to raise the capital expenditure target to Rs 12.2 lakh crore for FY 2026-27 from Rs 11.2 lakh crore in the current year will provide a strong impetus to demand creation and industrial activity, including the Automobile sector.
Continued exemption of Basic Customs Duty on Capital Goods used for manufacturing lithium-ion batteries, along with the extension of concessional duty benefits for lithium-ion cells and their parts used in manufacturing batteries for electric and hybrid vehicles for a further two years till March 2028, will enable the creation of a robust EV ecosystem in the country.
The allocation of 4,000 e-buses for the Purvodaya States will accelerate the transition toward sustainable public mobility solutions.”
Stephane Deblaise – CEO, Renault Group India
“The progression to India Semiconductor Mission 2.0, with its focus on equipment, materials, full-stack Indian IP and supply-chain strengthening, aligns closely with the evolving needs of the industry. The targeted push to reduce critical import dependencies, through initiatives on rare earth magnets and continued customs duty exemptions on capital goods for lithium-ion cells, creates confidence for deeper localisation and sustainable mobility.”
Vikram Gulati – Country Head, Toyota Kirloskar Motor
“Toyota Kirloskar Motor welcomes the Union Budget 2026–27. The measures towards strengthening the manufacturing value chain capabilities, especially encouraging the investments towards upstream processing of critical raw materials such as rare earth metals for permanent magnets, announcement for ‘India Semiconductor Mission 2.0’ and the ‘Electronic Component Manufacturing Scheme’ will further support the growth of the supply ecosystem of various industries, including the automotive sector.
The excise relief on biogas blended CNG and the allocation for Carbon Capture, Utilisation & Storage (CCUS), demonstrate India’s strong commitment towards decarbonization. Collectively, these measures will also enable sustainable growth of the automotive sector while advancing India’s transition to clean and inclusive mobility aligned with the vision of Viksit Bharat.”
Harshavardhan Chitale – CEO, Hero MotoCorp
“The Union Budget 2026 presents a balanced and forward-looking roadmap, and we welcome the strong emphasis on continuity and predictability in fiscal and industrial policy. Infrastructure investments particularly in highways, rural roads and urban mobility will enhance logistics efficiency and strengthen supply-chain resilience.
We also welcome the Union Budget’s continued support for the electric mobility ecosystem, including charging infrastructure, duty relief for battery manufacturing, and a focus on building rare earth mineral corridors. Together, these measures can accelerate the transition to clean mobility and make sustainable transportation a mainstream choice for millions of Indians.”
Raghupati Singhania – Chairman & Managing Director, JK Tyre & Industries
“The Union Budget FY26–27 reinforces India’s commitment to manufacturing-led growth. The continued drive on capital expenditure, with infrastructure allocation exceeding Rs 12 lakh crore, alongside fiscal consolidation at 4.3%, strikes a prudent balance between growth stimulus and macroeconomic stability. For the automotive and tyre sectors, sustained investments in infrastructure and logistics will improve cost efficiencies and support demand momentum.”
