As India prepares for Union Budget 2026, leaders across the automotive, commercial vehicle, construction equipment and mobility-tech sectors are voicing a clear message: the next phase of the country’s growth will hinge on strengthening domestic manufacturing, sustaining infrastructure investment and accelerating the shift toward cleaner, future-ready mobility.
From commercial vehicle makers to electric mobility startups, industry heads underline that policy stability, targeted incentives and continued public capital expenditure will be crucial for building resilience, boosting competitiveness and supporting India’s transition into a global automotive powerhouse.
Mr. Prasan Firodia, Managing Director, Force Motors, said, “Today’s commercial vehicle market is characterized by stability, increasing utilization, and distinct demand visibility. Better roads, growing highways, investments in ports and airports, and the benefits of recent policy and tax rationalization are all driving steady momentum on the ground. When taken as a whole, these elements are boosting transporters’ confidence and promoting the prompt replacement of outdated cars with more modern, efficient models.
Going forward, it will be crucial to maintain the focus on domestic manufacturing and public capital expenditures. Encouraging the replacement and scrappage of aging commercial vehicles can strengthen localization and supply-chain resilience while increasing demand, enhancing safety, and assisting in the phase-out of older, more polluting vehicles.
At the same time, there is a great chance to expedite cleaner mobility in a useful manner. When supported by enabling infrastructure, targeted incentives for electric commercial vehicles, particularly for ambulances, essential services, and small EV vans for first- and last-mile feeder connectivity to metro areas, can provide significant environmental and social benefits while still being profitable for operators.”
Mr. Deepak Shetty, CEO & Managing Director, JCB India, said, “As the Union Budget approaches, the CE industry looks forward to continued policy support that sustains India’s growth momentum. Infrastructure investment has consistently demonstrated a strong multiplier effect, and its ongoing prioritisation will be critical in enabling economic expansion across sectors. Enhanced funding support for state governments can further accelerate rural infrastructure development, particularly roads and water projects.
At a time when global trade conditions remain challenging, there is an opportunity to reinforce export competitiveness through WTO-compliant incentive frameworks and more effective utilisation of India’s Free Trade Agreements. A balanced emphasis on scaling up manufacturing, alongside sustained infrastructure development, will play a pivotal role in positioning India as a resilient and globally competitive economic powerhouse.”
Mr. Prashanth Doreswamy, CEO, AUMOVIO India, said, “The upcoming Union Budget must prioritize infrastructure development and policy stability to maintain India’s growth momentum. For AUMOVIO and the broader GCC ecosystem, we seek focused support in talent development, emerging-tech skilling, compliance simplification, and tier-2/3 city expansion. A budget that balances growth, innovation, and sustainability will cement India’s position as a global hub for capability centers and long-term value creation.”
According to Mr. Narayan Subramaniam, CEO & Co-founder, Ultraviolette, “India is among the world’s largest automotive markets, with two-wheelers forming a significant share of the segment. While India’s EV journey has made commendable progress- led by e-scooters and electric cars, certain categories within electric mobility are yet to receive the policy attention they require. As India aspires to lead the global EV transition, Budget 2026 must recognise the strategic importance of strengthening the entire electric two-wheeler ecosystem through incentives and subsidies for all under the PLI Scheme that will further support advanced battery research, indigenous technology development, and innovation-driven manufacturing. Enabling such ecosystems will empower startups to build globally competitive products and position India as a true leader in electric mobility.”
Mr. Sidhartha Khurana, Managing Director, STUDDS Accessories, said, “As the auto industry continues to evolve, the Union Budget 2026 comes at a crucial time, especially after a strong recovery driven by GST 2.0 reforms that have improved compliance and strengthened supply chains. Sustained focus on infrastructure development, support for domestic manufacturing and skill upgradation will be key to maintaining growth momentum across the auto and auto ancillary sector as volumes rebound across segments. The industry is also looking for continuity, along with a renewed push towards localization, innovation and ease of operations to enhance global competitiveness. A forward looking budget that supports manufacturing scale-up, road safety and policy stability will enable companies like ours to invest with confidence, create employment and contribute meaningfully to India’s journey as a global automotive manufacturing hub.”