Auto Sector Eyes Budget 2025 Boost for EVs, Charging Infra, and Rural Demand

31 Jan 2025 , 12:55 PM

The auto industry is looking at Budget 2025 with great expectations, particularly in electric vehicles and clean energy initiatives, since the sector expects stronger government support.

Three main focus areas are:

• EV supply chain development, especially in battery manufacturing.
• Scaling up charging infrastructure and energy storage systems.
• Rural demand booster to increase vehicle sales.

Incentives in battery manufacturing are critical, with the industry expecting direct government support to increase domestic value addition to 50%-60% to reduce dependence on imports.

The sector is also looking for greater investment in EV charging stations and energy storage systems, which are necessary for a smoother transition to green mobility. Higher budgetary provisions for R&D in clean energy, semiconductors, and EV technology would further accelerate the growth of the industry.

Rural demand is also critical. The industry hopes for more headroom for higher allocations for rural development schemes to pump up sales in smaller towns and villages.

Government support in EV infrastructure, battery production, and rural growth have the potential to propel auto industry sentiments. Thus, Budget 2025 would be an event considered crucial for this sector.