CV industry seeks stronger EV push in Budget

As Union Budget 2026 approaches, India’s commercial vehicle (CV) sector is keenly watching for stronger policy backing to accelerate electrification. Industry leaders expect the government to introduce clearer, time-bound targets for electric mobility, alongside sustained demand incentives and faster rollout of public charging infrastructure. With electric vehicle adoption gaining momentum, stakeholders believe the upcoming Budget must bridge existing gaps in financing, infrastructure, and regulatory support to make electric mobility commercially viable at scale.

EKA Mobility seeks clear and measurable electrification goals

Sudhir Mehta, Founder and Chairman of EKA Mobility, highlighted that crossing 2.3 million EV sales in 2025 reflects the growing significance of electric mobility in India’s transport landscape. However, he emphasised that continued policy support is crucial to maintain this momentum. According to him, Budget 2026 should provide sustained demand incentives, accelerate the deployment of public chargers, and strengthen domestic component manufacturing.

Mehta further stressed the need for well-defined, time-bound electrification targets, particularly for electric buses and public transport fleets. He also called for greater focus on battery research and development, recycling initiatives, and localisation of supply chains to reduce costs, enhance sustainability, and build a globally competitive EV ecosystem.

GreenCell Mobility calls for broader policy inclusion

Devndra Chawla, MD and CEO of GreenCell Mobility, stated that while public transport electrification is progressing, private operators remain largely excluded from major incentive frameworks. He suggested that Budget 2026 should extend direct subsidies under schemes like FAME and PM E-DRIVE to private intercity and contract operators, who play a crucial role in scaling electric bus adoption.

Chawla also advocated for easier access to capital through interest subvention and green financing options, recommending affordable loan rates between 4 to 6 percent to improve project feasibility. He believes that lowering financing costs would significantly boost investments in electric buses.

Demand for tax benefits and charging incentives

Industry players are also seeking a dedicated tax deduction framework, similar to Section 80, for electrification-related expenses such as charging infrastructure, maintenance, and permit costs. Chawla suggested that CAPEX incentives for charging infrastructure and open access to public authority depots could optimise asset utilisation and reduce upfront investment barriers.

Additionally, he recommended route-level incentives such as toll exemptions and faster permit clearances for operators committing to electrification. Rationalising GST rates on EV components, batteries, and manpower involved in EV operations was also highlighted as a key measure to drive faster adoption.

Need to scale electric buses beyond public fleets

Despite strong growth in overall EV sales, electric buses remain significantly underpenetrated in India’s public transport system, with fewer than 10,000 e-buses currently operational. Meanwhile, over 21.8 lakh EVs were sold between November 2024 and October 2025, indicating robust demand in other segments.

The government’s PM E-DRIVE programme, with an allocation of Rs 10,900 crore and a target of deploying 14,000 e-buses by FY28, has been welcomed by the industry. However, experts believe that widening eligibility, improving financing mechanisms, and enhancing operational viability are essential to attract greater private sector participation.

Budget 2026 expected to shape future of clean mobility

Industry leaders agree that a stable and forward-looking Budget, aligned with electrification goals, financing support, infrastructure expansion, and regulatory clarity, can make electric buses commercially viable. This, in turn, would reduce diesel dependence, lower emissions, and create a cleaner, more resilient public transport system for India.

With strong expectations from the commercial vehicle sector, Budget 2026 is seen as a critical turning point in shaping the future of electric mobility in the country.