Budget 2026-27 wishlist: Five key expectations from the automotive sector

_Here is a list of key expectations from the country's automotive sector. _

Ease of doing business, deepening manufacturing localisation

Toyota Kirloskar Motor Executive Vice President - Corporate Affairs and Governance - Vikram Gulati said they anticipate that the forthcoming Union Budget will foster the next phase of development by prioritising impactful reforms aimed at enhancing the ease of doing business, deepening manufacturing localisation, and advancing workforce skills in line with rapid technological advancements.

Furthermore, the company urged the government to maintain its focus on infrastructure development and continue its sustained support for multiple green energy pathways to achieve India's long-term goals of energy security and net-zero emissions, he added.

Continued investment in infrastructure, EVs

JSW MG Motor India MD Anurag Mehrotra said the automaker anticipates enablers for continued investment in infrastructure, as the logistics industry continues to contribute significantly to the GDP.

"On the electric mobility front, we expect the government to further strengthen consumer-led incentives and schemes to accelerate EV adoption. Rationalisation of duties on EV components would be a welcome move, along with greater support for localisation of EV manufacturing," he added.

While the charging network has expanded, there is still considerable progress to be made, Mehrotra stated.

"We would greatly appreciate strong fiscal support for the expansion of charging infrastructure," Mehrotra added.

Policy continuity that enhances affordability and supports rural incomes

JK Tyre & Industries Chairman & Managing Director Raghupati Singhania said that for the automotive and tyre sectors, policy continuity that enhances affordability and supports rural incomes can sustain demand and create strong multiplier effects across the economy.

"A forward-looking, investment-led Budget will play a key role in accelerating India's manufacturing growth and reinforcing investor confidence," Singhania added.

Singhania said the tyre maker is optimistic about a renewed emphasis on meaningful ease of doing business, particularly through faster approvals and more streamlined regulatory processes that can unlock private investment.

Continued focus on logistics

JK Tyre's Singhania added that continued focus on quality infrastructure and logistics will be critical in strengthening India's cost competitiveness and manufacturing efficiency.

"In the context of evolving global trade challenges, policy measures that support exports and deepen India's integration into global supply chains will be increasingly important," Singhania stated.

Clear policy roadmap on Sintered Rare Earth Permanent Magnet scheme

According to EV, the auto industry is also expecting a clear policy roadmap and guidelines on the Sintered Rare Earth Permanent Magnet scheme.

In November 2025, the Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' with a financial outlay of ₹7,280 crore.

This first-of-its-kind initiative aims to establish 6,000 Metric Tonnes per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India, thereby enhancing self-reliance and positioning India as a key player in the global REPM market.

REPMs are one of the strongest types of permanent magnets and are vital for electric vehicles, renewable energy, electronics, aerospace, and defence applications. The scheme will support the creation of integrated REPM manufacturing facilities, involving the conversion of rare earth oxides to metals, metals to alloys, and alloys to finished REPMs.