Auto Industry Charts Budget 2026-27 Wishlist
The Indian automobile sector is outlining a clear set of expectations for the Union Budget 2026-27, focusing on increased public spending, consistent policy frameworks, and accelerated support for cleaner mobility. As the sector navigates fluctuating demand and global supply chain disruptions, stakeholders view the upcoming budget as crucial for maintaining economic momentum.
Infrastructure Spending Core Expectation
Automakers and suppliers are anticipating fresh allocations toward road, transport, and logistics infrastructure. This continued emphasis on infrastructure development is seen as vital for improving mobility, reducing operational costs for businesses, and ultimately driving vehicle demand over the medium term. Consistency in policymaking remains a paramount concern for industry leaders, who seek long-term clarity following the implementation of GST 2.0.
Electric Mobility and Rural Demand Focus
Electric vehicle adoption is a dominant theme, with industry players arguing that cost pressures and ecosystem gaps hinder expansion outside major urban centers. Rationalizing the 'inverted duty structure' for EVs is proposed to bolster domestic manufacturing and competitiveness, further speeding India's transition to sustainable mobility. Simultaneously, there is an optimistic outlook for government measures aimed at boosting rural incomes, which are closely tied to demand for two-wheelers, entry-level passenger vehicles, and small commercial vehicles.
Supply Chain Resilience and Future Readiness
Amidst global uncertainties, strengthening the automotive supply chain has emerged as a key priority. The budget is expected to provide impetus for localization efforts, support for Micro, Small, and Medium Enterprises (MSMEs), and alignment with clean-mobility goals. This strategic focus aims to build resilient, diversified, and future-ready automotive value chains capable of withstanding global turbulence while accelerating the adoption of advanced technologies. 
