TVS Motor chairman Sudarshan Venu has opined that expanding semiconductor and advanced technology capabilities will be vital for the future of EVs, electronics, and next-generation mobility. Welcoming the Union Budget 2026 as one that provides a strong and consistent policy framework for India’s emergence has a global powerhouse under the leadership of Prime Minister Narendra Modi, he said the sustained push on infrastructure, higher capital expenditure, and reforms aimed at easing business conditions will help in attracting private investment and strengthening supply-chain resilience. “We welcome the focus on clean energy solutions, MSME growth, and technology-led inclusion – benefiting farmers, women in STEM, youth, and the differently abled”. He highlighted as vital the focus on scaling manufacturing in strategic sectors and building domestic value chains for critical minerals and rare earths.
Shailesh Chandra, President, SIAM and MD & CEO, Tata Motors Passenger Vehicles said, “We welcome the Union Budget 2026–27, which continues to focus on long-term, sustained economic growth with a strong emphasis on manufacturing, infrastructure including freight corridors & waterways and fiscal prudence. The decision to raise the capital expenditure target to Rs 12.2 lakh crore for FY 2026-27 from Rs 11.2 lakh crore in the current year will provide a strong impetus to demand creation and industrial activity, including the Automobile sector.
Enhanced support for electronic components manufacturing, setting up dedicated corridors for mining and processing of rare earth, along with initiatives to establish high-tech tool rooms and supporting container manufacturing, will develop supply chain resilience and help in streamlining exports. The allocation of 4,000 e-buses for the Purvodaya States will accelerate the transition toward sustainable public mobility solutions. Continued exemption of basic customs duty on capital goods used for manufacturing lithium-ion batteries, along with the extension of concessional duty benefits for lithium-ion cells and their parts used in manufacturing batteries for electric and hybrid vehicles for a further two years till March 2028, will enable creation of a robust EV ecosystem in the country.
Tarun Garg, MD & CEO, Hyundai Motor India, said the Union Budget presents a long-term focused roadmap that accelerates India’s rise as a global manufacturing hub and Atmanirbhar Bharat, further building on the mega GST 2.0 reforms.Focus on the rare earth corridor, EV battery and electronics manufacturing, MSME empowerment, inclusivity and AI investments position India for global leadership. The strong push for tourism, rural growth and enhanced regional connectivity will further spur economic activity and open new avenues for advanced mobility, logistics and transportation solutions. With a bold capital outlay, simplified taxation and improved ease of doing business, this Budget is a decisive step towards a healthy and Viksit Bharat, reinforcing confidence in India’s growth story.
Stéphane Deblaise, CEO, Renault Group India, said the Union Budget sends a strong and reassuring signal of policy continuity and intent for India’s manufacturing-led growth. Anchored in the Kartavya pillars for Viksit Bharat, the Budget demonstrates a clear commitment to building resilience, competitiveness and technological depth across strategic sectors. The progression to India Semiconductor Mission 2.0, with its focus on equipment, materials, full-stack Indian IP and supply-chain strengthening, aligns closely with the evolving needs of the industry. The targeted push to reduce critical import dependencies, through initiatives on rare earth magnets and continued customs duty exemptions on capital goods for lithium-ion cells, creates confidence for deeper localisation and sustainable mobility. Supported by public capital expenditure of ₹12.2 lakh crore and enhanced logistics corridors, the Budget provides greater momentum to responsible growth of the Indian economy
Vikas Singh, MD, Greaves Electric Mobility, said that Union Budget’s decision to promote the mining and research for rare earth permanent magnets in India’s mineral-rich states is a positive development towards deepening India’s domestic capacity for rare earth sector. This is in line with India’s stated policy focus and growing adoption of EVs in India. Over time, the budget’s policy move is also expected to develop India as a globally competitive rare earth hub, weaning away India’s and global dependence on China. The move will create the much needed capability and capacity in the upcoming years – that makes India self-reliant in critical component space for EV industry.