As the 2025 Union Budget approaches, the electric vehicle (EV) industry is eagerly awaiting announcements that could significantly shape its growth trajectory. Industry experts are hoping for increased incentives and subsidies, especially for the E-truck segment, which is poised to revolutionize logistics and transportation. With growing demand for electric three-wheelers, which provide an affordable and eco-friendly transportation alternative, the industry anticipates the government will focus on expanding incentives for both manufacturers and consumers. However, the challenge of high interest rates continues to weigh on both consumers and businesses, making it harder to finance EV purchases and infrastructure development. There is a strong expectation that the government will introduce measures to ease financing conditions to foster widespread adoption across segments.
In addition to financial relief, the EV industry is pushing for enhanced support for charging infrastructure, particularly in rural and remote areas. Expanding EV charging networks is vital to ensure the success of electric vehicles in India, but significant investments are needed. To achieve this, stakeholders hope to see the introduction of tax breaks, public-private partnerships, and streamlined regulations for infrastructure development. With growing concerns around climate change and air pollution, the EV sector looks forward to a budget that not only addresses the current challenges but also accelerates India’s transition to a sustainable and future-ready mobility ecosystem.
Uday Narang, Founder and Chairman, Omega Seiki Private Limited