As India approaches another fiscal budget announcement, auto sector leaders are emphasising the Stakeholders from both the dealership and consulting sectors have identified clear areas where policy action could make a significant difference for the industry.
Vivek Datta, MD and CEO, Globe Toyota, JCBL Group, points out that dealerships operating in Haryana and Punjab face persistent challenges due to regulatory complexities. He says that streamlining these processes is vital for dealerships selling diesel, petrol, and hybrid passenger vehicles,
Datta draws attention to the unique position of hybrid vehicles in India’s automotive landscape. He explains that hybrids are both practical and environmentally friendly, particularly suited for a developing economy like India. “Strong support for hybrids—practical and eco-friendly for India’s emerging economy—through incentives, tax rebates, and simplified regulations will boost adoption, reduce emissions, and drive sustainable growth,” Datta says.
From a policy perspective, he urges the government to prioritise incentives that specifically aid hybrid vehicle adoption. He believes such measures not only support consumer choice but also help dealerships contribute to the nation’s broader environmental targets.
Subhabrata Sengupta, Partner, Avalon Consulting, adds that the goods and services tax (GST) reforms have already delivered substantial benefits to the auto sector. He states, “The big boost to the GST has already happened. There is some discussion about extended PLI and EV subsidies, as well as EV infrastructure investment, with a focus on scrappage. Personally, I would welcome additional allocation on e-buses (fleet modernisation and electrification much needed) and incentives on R&D (where much of the Indian Auto Comp needs to move from build to print to tech ownership).”
Sengupta’s remarks underline the industry’s recognition that incentives for electric vehicles (EVs), as well as investments in public transport electrification and research and development, are important for the next phase of growth. He also points to the need for more substantial fleet modernisation, particularly through e-bus allocations, which could have wide-ranging impacts on urban mobility and emissions reduction.
Industry leaders consistently point to the importance of government support for both hybrids and fully electric vehicles. Many believe that effective fiscal policies, including production-linked incentives (PLI) and tax rebates, can accelerate the transition to cleaner mobility solutions and strengthen India’s position in global auto manufacturing.
As the budget nears, experts agree that regulatory simplification, targeted incentives, and continued infrastructure investment will be key to addressing industry challenges and setting the path for a more sustainable future.