The automotive industry has largely welcomed the provisions of Budget 2025 intended to give a fillip to demand and encourage local production of key raw materials such as EV batteries. Here are some of the highlights.
Niraj Singh, Founder and CEO, Spinny
“The Union Budget 2025 is a significant boost for India’s startup ecosystem and the broader mobility sector. The ₹10,000 crore Fund of Funds (FFS) will enhance domestic capital availability, fostering innovation in automotive technology, digital retail, and financing solutions are the key drivers for the used car market’s growth.
Additionally, the revision of income tax slabs, with no tax up to ₹12 lakh, will increase disposable income, encouraging higher consumer spending on big-ticket purchases like cars. Support for MSMEs and startups, coupled with policies driving financial inclusion and digital infrastructure, will strengthen trust and accessibility in the pre-owned car market.
With a strong focus on economic growth, entrepreneurship, and consumer empowerment, this budget sets the stage for greater mobility adoption, affordability, and innovation in India’s evolving automotive landscape.”
Hiren Pravin Shah Founder, MD & CEO – Replus Engitech; A Subsidiary of Bhilwara Energy Limited
Owing to the Union Budget announcement, these are exciting times for the Green Revolution. The import duty cuts on EV batteries and the government’s push for technology driven local manufacturing of grid scale batteries are welcome moves for Replus. This initiative aligns perfectly with our vision for an Atmanirbhar Bharat, strengthening our commitment to developing world-class energy storage solutions in India for the global market.”
Sandeep Aggarwal, Founder & CEO of Droom
“We commend the Finance Minister for coming up with a forward-looking budget and believe that it is focused on driving inclusive growth, giving a boost to India’s burgeoning MSME & Start-up sector. We particularly appreciate the expanded scope and fresh contribution of INR 10,000 CR as part of the “Fund of Funds” for start-ups. This is a huge step, when seen in the context of funding winter for start-ups and will certainly boost the entrepreneurial sentiment in the country. This development, coupled with establishment of Centres of Excellence for Skilling and AI, will further enable the next wave of entrepreneurship in the country. At the same time, the budget also recognised the contributions of MSMEs, enhancing credit access and facilitating tech upgradation. At Droom, we look forward to supporting the government’s key undertaking towards making India a global hub for manufacturing and innovation.”
Sanyam Gandhi, Whole-time Director, Chartered Speed
The government’s push for Public-Private Partnerships (PPP) in infrastructure, including a 3-year pipeline of state projects and ₹1.5 lakh crore for 50-year interest-free loans, creates strong opportunities for urban development, better infrastructure, and mobility innovations. The further push in EV manufacturing will accelerate growth in multimodal transport, clean energy, and digital infrastructure, helping to accelerate the shift to cleaner, more efficient transport networks. At Chartered Speed, we see significant potential to scale EV adoption and multimodal transport solutions through PPPs and sustainable transit initiatives. Additionally, the proposed no-income-tax slab for earnings up to ₹12 lakh will boost consumption and overall liquidity in the economy, boasting travel spends.
Atul Aggarwal, Managing Director of Sterling Tools Limited
“The Union Budget has taken commendable steps toward strengthening India’s electric vehicle ecosystem, aligning with the nation’s long-term sustainability and net-zero ambitions. The introduction of the National Manufacturing Mission will significantly boost local manufacturing by focusing on ease of doing business, technology availability, quality products, and developing a future-ready workforce for in-demand jobs. This will not only drive the growth of the EV sector but also support localization efforts, reduce dependence on imports, and create high-quality, sustainable mobility solutions for India and beyond.”