Automobile dealers and manufacturers in Madhya Pradesh are pinning high hopes on the Union Budget 2026, scheduled to be presented on Feb 1, seeking measures to revive demand across passenger vehicles, two-wheelers and electric mobility segments.
Dealers said sales momentum remained uneven over the past year, particularly in entry-level cars, two-wheelers and EVs, prompting expectations of policy support to improve affordability and stimulate consumer spending.
“A real push is needed to revive automobile sales, especially in entry-level cars, two-wheelers and EVs where demand remained soft. Dealers across the country are expecting the Budget to address affordability through tax relief, easier financing and continued policy support for electric mobility,” said Madhya Pradesh Federation of Automobile Dealers Associations (FADA) chairperson Ashish Pande.
He said key expectations include interest subvention schemes, rural-focused incentives, GST rationalisation for EV charging services and extension of concessional rates for hybrid vehicles. Industry bodies are also seeking continuation of EV incentive schemes such as PM E-DRIVE or FAME beyond March 2026, along with duty exemptions on key components, including batteries.
“Improving purchasing power of the middle class is critical. Reduction in interest rates, easier availability of auto loans and supportive credit policies will directly help revive showroom footfalls and conversions,”said an automobile dealer Aditya Kasliwal.
Dealers also expect the Budget to support vehicle scrappage through rebates or GST credits on new purchases and rationalise customs duty in the premium segment, where imported vehicles currently attract duties ranging between 70 and 110 percent.
An automobile dealer in Indore Praveen Patel said state-level taxation also plays a major role in vehicle affordability. “RTO tax on cars should be reduced to lower on-road prices. In addition, GST on CNG vehicles and related components is very high in Madhya Pradesh, which impacts customer affordability and operating costs,” he said.
Industry representatives said a stable tax regime and targeted incentives would help sustain recovery, strengthen rural demand and reinforce Madhya Pradesh’s position as a major automobile manufacturing and retail hub in 2026.
