As India accelerates its transition towards a sustainable, low-carbon economy, the electric vehicle (EV) sector stands at the forefront of this green revolution. With ambitious targets to achieve 30% EV penetration in new vehicle registrations and the establishment of 39 lakh public and semi-public charging stations by 2030, the Union Budget 2025 is poised to play a transformative role in reshaping the nation’s mobility landscape. Industry leaders are calling for key reforms, including enhanced subsidies, reduced GST on EVs, incentives for fleet electrification, and robust investments in charging infrastructure. These measures, coupled with a focus on skill development, green manufacturing, and innovation, are expected to catalyze India’s journey towards becoming a global hub for EVs and sustainable mobility.
Rahul Goenka, Director, ElectroRide
“The Indian government has set an ambitious target of having EVs comprise 30% of new private vehicle registrations, totalling 8 crore EVs, by 2030. To support this growth, we need a significant expansion of the charging infrastructure, with an estimated 39 lakh public and semi-public charging stations. As the nation strives to meet these targets, the upcoming Union Budget 2025 is expected to play a crucial role in reshaping India’s EV sector. We anticipate several key reforms from the budget, including incentivizing EV adoption through enhanced subsidies, reduced GST on EVs, and incentives for fleet electrification, as well as investments in advanced infrastructure development, such as widespread charging networks, to facilitate the seamless integration of EVs into daily life”.
Nileshkumar Kukalyekar, Business Director, Envalior
“India’s economic future hinges on its ability to transition to a low-carbon economy, with sustainable manufacturing and innovation playing a critical role. We emphasize the need for increased investment in sustainable manufacturing and innovation. With global demand for environmentally responsible products on the rise, supporting industries that drive sustainability is key to India’s economic future. We urge the government to focus on policies that incentivize the use of recycled and bio-based materials, support research into new green technologies, and promote circular economy models. Strengthening these initiatives can help companies like ours accelerate the transition to a low-carbon, sustainable economy. Furthermore, expanding financial support for green manufacturing practices will help India meet its environmental targets while boosting job creation and positioning the country as a global leader in sustainable industry”.
Veer Singh, CEO, Lord’s Automative Pvt. Ltd.
“The transition to green mobility is likely to be further expedited for India by the 2025 budget, setting a target to achieve 30 percent penetration of electric vehicles in the total automobile sales by 2030. Such penetration would certainly be possible in the country as India is more price-sensitive compared to other places.
More efforts need to be made in building a robust battery infrastructure, such as charging stations and battery recycling facilities, to boost consumer confidence. The budget should also include state-level incentives such as remission of registration fees for two-wheelers and three-wheelers in addition to subsidies to make EVs more widely available.
This would also ensure low-cost funding options through PSU banks and NBFCs with attractive interest rates, making it easy for both personal and commercial buyers to switch to electric vehicles. Equally, all logistical challenges and transportation costs must be addressed to cater to the diverse and sensitive customer base in terms of price.
The budget will support the rapidly growing EV industry by being standardised rather than being subjected to monopolistic activities. There might be a good base for sustainable mobility with the budget by advocating local manufacturing, self-reliance in the EV supply chain, and measures to establish India as a global hub for EV manufacturing”.
Mr. Niranjan Nayak, MD, Delta Electronics India
“We want Union Budget 2025, to focus on driving India’s transition to a greener, more sustainable economy. At Delta Electronics India we are particularly keen on seeing robust measures aimed at accelerating the growth of the EV sector, which plays a pivotal role in reducing the country’s carbon footprint. We are positive about the upcoming budget and are expecting it to offer good incentives to facilitate the growth of EV infrastructure, particularly charging networks, which is an essential element for such wide adoption.
One of our major expectations is the implementation of financial incentives and tax rebates that would promote both public and private investments in EV charging infrastructure. This would form a good foundation for the adoption of EVs throughout the country. Furthermore, we expect to see more focus on public-private partnerships, which will help ease the process of charging station rollouts, especially in tier-2 and tier-3 cities where infrastructure development has been relatively slow.
We also look forward to increased funding on R&D initiatives that push energy-efficient technologies, especially in making renewable integration with the infrastructure for EVs. This will not only meet the objectives of Delta in supporting an enhanced greener India but most importantly ensure long-term sustainability and innovation.
We are looking forward to a budget that not only supports the EV ecosystem but also puts India at the forefront of global sustainable energy and mobility. And at Delta, we will be committed to actively playing a part in this transformation, building a sustainable future for India”.
Amit Gupta, Co-founder & CEO, Yulu
Urban India’s pollution and congestion crisis demands urgent action to mainstream innovative mobility solutions. Yet, low-speed e-MaaS (electric mobility as a service) companies, like Yulu, who drive EV adoption and improve air quality, remain excluded from subsidy benefits available to passenger EVs. This is a missed opportunity, as low-speed EVs (LSEVs) have proven essential for urban mobility, particularly within quick commerce and food delivery.
We urge the Central Government to support shared LSEV fleets by encouraging States to set more ambitious electrification targets for intra-city logistics, and to generate demand via Central schemes. This would make affordable and sustainable mobility accessible to millions of underprivileged gig work-seekers, transforming their livelihoods.
Skill development is another critical need. The EV sector’s job-creation potential is hindered by a shortage of trained professionals like mechanics and battery technicians. Redirecting government skill programmes towards this area will help the EV sector to grow faster.
Lastly, the current GST framework, which taxes EVs with fixed batteries differently than those with swappable batteries, leads to huge and permanent capital blockages for e-MaaS firms. Releasing these blocked GST input tax credits will allow e-MaaS companies to speedily deploy more EVs and energy infrastructure for their users”.
Mr. Dinkar Agrawal, Founder, CTO & COO, Oben Electric
“The Union Budget 2025 is a critical opportunity to address key challenges in India’s EV transition. To achieve the ambitious target of 30% EV penetration by 2030, it’s crucial to tackle both manufacturing and consumer-centric challenges.
Simplifying the GST structure with a uniform 5% tax across EVs, components, and charging infrastructure is essential to reducing costs and fostering growth. Additionally, resolving the inverted GST structure on raw materials will ease working capital pressures and encourage sustainable manufacturing. Performance-linked incentives for battery innovation and indigenous component manufacturing can further strengthen India’s Make-in-India push, positioning the country as a global leader in EV technology. On the consumer front, initiatives like reduced interest rates on EV loans and targeted subsidies can make electric vehicles more accessible, bridging the affordability gap.”
Mr Maxson Lewis, Founder and CEO of Magenta Mobility
“The Union Budget 2025 is a pivotal moment for the EV logistics sector, which plays a crucial role in India’s transition to sustainable transportation. Targeted incentives for commercial fleet electrification, reduced financing costs for EV logistics operators, and a more structured GST framework for EV components can significantly accelerate adoption.
Additionally, policy support for localised battery recycling and supply chain development will strengthen India’s self-reliance in the EV ecosystem. With the right measures, the Budget can drive large-scale EV adoption in logistics, making clean mobility more accessible, efficient, and economically viable.”
