The Union Budget 2025-26 has been widely welcomed by industry leaders, particularly for its transformative impact on the electric mobility and start-up ecosystems. Key highlights include the exemption of basic customs duty (BCD) on 35 capital goods critical for EV battery manufacturing and tax exemptions on essential materials like lithium and cobalt, significantly lowering production costs and promoting local supply chains.
The budget also emphasised boosting the MSME sector through increased credit access and skill development, alongside measures supporting startups, gig workers and cleantech manufacturing. Investments in infrastructure, public-private partnerships and tax relief for the middle class are expected to stimulate consumer spending and economic growth.
Overall, the budget is seen as a strong step toward making India a global leader in sustainable mobility, innovation and self-reliant manufacturing.
Partner and Automotive Tax Leader at EY India Saurabh Agarwal noted, “The proposed income tax cuts could boost the middle class's spending power, potentially increasing demand for two-wheelers, three-wheelers, and small cars. Further, the government's commitment to fostering a sustainable automotive ecosystem is clearly demonstrated through its strategic initiatives, which are poised to deliver substantial benefits to the EV industry. The budget astutely emphasizes the complete exemption of Basic Customs Duty (BCD) on cobalt powder and waste, scrap of lithium-ion battery, lead, zinc, zirconium, copper, etc. These pivotal measures are designed to ensure a reliable domestic supply of essential critical minerals for manufacturing and to stimulate job creation across India.”
The Central Government has significantly increased budgetary allocations with PME E-Drive receiving INR 40 billion, auto PLI being bolstered by INR 22.18 billion and advanced chemistry cell PLI benefiting from an infusion of INR 1.55 billion. 
Commenting on the newly introduced budget, Mercedes-Benz India Managing Director Santosh Iyer said, “India has long been regarded as a niche garden with high fences; however, this budget is expected not only to enrich the garden by stimulating consumption and strengthening MSME sector, but also lowering the fences through tariff rationalisation and adoption of international practices on transfer pricing, with a clear commitment to enhanced global trade integration. This will send a strong positive signal to the industry, reinforcing confidence in the ‘India Growth Story’, paving the way for sustained investment and future expansion. The announcement of setting up of National Manufacturing Mission’s for clean technology manufacturing and support to domestic EV battery manufacturing is a positive step towards strengthening EV ecosystem. We also welcome the setting up of a high-level committee to evaluate regulatory reforms which will enhance ease of doing business in long term.”
Volkswagen India Brand Director Ashish Gupta, averred, “The Union Budget presents a forward-thinking roadmap for strengthening India’s manufacturing ecosystem with a clear emphasis on clean technology, skill development and infrastructure growth. By prioritizing these areas, along with manufacturing, India is advancing toward a circular economy—where investments, innovation, and sustainable practices drive long-term growth. Infrastructure growth through public-private partnerships and capital expenditure incentives will pave the way for India to become a globally competitive manufacturing hub.” 
Commercial vehicle players have also lauded the budget. Ashok Leyland Executive Chairman Dheeraj Hinduja noted, “The finance minister has presented a clear, growth-driven budget that aligns with the Prime Minister’s vision of fostering a competitive and resilient India with inclusive growth by investing in people, economy and innovation. Additionally, the government's strong commitment to green mobility is expected to create new avenues for innovation and growth across the country.”
Daimler India Commercial Vehicles Managing Director Satyakam Arya iterated, “The Union Budget 2025-26 will be a game changer for India and the mobility sector, helping us become a global leader in EV manufacturing and sustainable transportation. The emphasis on localising battery production will create technological advancements and generate more jobs. Also, with mining identified as one of the six domain areas for transformative reforms and the introduction of the State Mining Index, we see major growth potential for the sector in the coming years.”
EKA Mobility Chairman Sudhir Mehta said, “These different programmes demonstrate a strong commitment to sustainability, innovation and greater industrial competitiveness, setting the framework for transformative progress in a variety of critical sectors. The nation's energy revolution will be dependent on funding for small modular reactors and the government's target of 100 gigawatts of nuclear power by 2047. Long-term growth can be solidified by financial agreements that allow governments to expand their borrowing capacity, as well as indirect taxation initiatives targeted at increasing domestic value creation.” 
Two-wheeler industry
In a move to avoid protectionist signals, the government has reduced import duties on high-end motorcycles. This decision aligns with India's commitment to lowering trade barriers and could influence the premium motorcycle segment.
With electric mobility remaining the focus point of the automotive sector, the budget has made pivotal efforts for bolstering manufacturing. Drawing on that, companies operating in the EV two-wheeler space has welcomed the developments with open arms. 
Kolkata-based Motovolt Mobility Founder Tushar Choudhary said, “"The recent budget has delivered a promising outlook for India’s electric vehicle industry, especially with the reduction in BCD on capital goods related to EV manufacturing. This move will help lower production costs, making EVs more affordable for consumers and encouraging higher sales. Aligned with the National Manufacturing Mission, the budget’s focus on rationalising customs tariffs signals the government's intent to localize high-value production and reduce dependency on imports. Additionally, the exemption on critical minerals like lithium is a significant step toward easing the supply of vital components for EV batteries, further lowering costs and boosting domestic manufacturing. Efforts to localize EV components like batteries, motors and controllers will help reduce upfront costs which would further strengthen India’s EV Ecosystem giving the EV sector the ability to penetrate the Indian markets.”
Chennai-based high performance EV two-wheeler manufacturer Raptee HV’s Co-founder Dinesh Arjun said, “The Finance Minister’s focus on nurturing and investing in innovation is a commendable step toward accelerating new technologies that will shape our future. The allocation of a Deep Tech Fund will further strengthen India’s industrial ecosystem, fostering a globally competitive, tech-driven economy.”
Drawing on the same lines, Revamp Moto Chief Executive Officer Pritesh Mahajan said, “"The National Manufacturing Mission’s support for clean tech manufacturing is a game-changer for India's sustainable future. I firmly believe that this initiative will accelerate the growth of domestic EV battery and solar panel production, reducing our reliance on imports while strengthening India's position as a global leader in green technology. The additional INR 100 billion investment underscores the government’s commitment to fostering innovation, job creation and energy security.”
Welcoming the budget, Odysse Electric Founder Nemin Vora said, “We appreciate the Union Budget 2025, which underscores the government's commitment to fostering economic growth and empowering citizens. The adoption of progressive policies, particularly within the existing tax framework, is a key step in enhancing disposable income and driving consumer spending. This decision will significantly impact consumer-driven sectors, especially the two-wheeler industry. With more disposable income in the hands of consumers—particularly the middle class—purchasing power is set to rise. As a result, more individuals will be encouraged to invest in personal mobility solutions like two-wheelers.”
Associates talk
The boost towards electric mobility is also poised to impact the entire ecosystem. DriveX Founder Narain Karthikeyan noted, “The 2025 Budget is a strong step towards inclusive economic growth, bringing significant benefits across all sections of society. The increase in MSME turnover limits, along with enhanced credit access and intensive skill-development programmes will fuel entrepreneurship, business expansion and youth employment. We also welcome the government’s recognition of the gig economy, with steps to regularise support for gig workers and improve their access to credit facilities. With enhanced credit guarantee cover for MSMEs and startups, particularly in focus sectors crucial for Atmanirbhar Bharat, the budget lays a strong foundation for sustained growth and economic resilience.”
Commenting on the same lines, Taabi Mobility Limited Chief Executive Officer Pali Tripathi said, “The transformation of India Post into a large-scale logistics network, along with greater accessibility to PM Gati Shakti data for the private sector, will significantly enhance connectivity, particularly in hinterland regions. These initiatives will drive smarter freight management, optimise last-mile delivery, and make transportation more seamless and sustainable.”
On the aggregator front Rapido Chief Financial Officer Vivek Krishna said, “The Union Budget 2025-26 has proposed a review of both financial and non-financial sector regulations that are expected to help businesses perform better with lesser compliances. It reflects a bold vision for Viksit Bharat, one that empowers the gig economy, promotes sustainable mobility, and catalyses digital innovation. We welcome the social security scheme and healthcare support announced for gig workers. The e-shram portal registration and the PM Jan Arogya Yojana will be a game-changer in prioritising the well-being of gig workers, including our captains. It’s also encouraging to see the government’s effort in promoting green mobility by incentivising local EV component manufacturing.” 
Alluding to how the manufacturing push will bolster the electric mobility segment, Kinetic Engineering Managing Director Ajinkya Firodia said, “These steps noted in budget will significantly enhance India’s position as a global hub for electric mobility and clean energy technologies. In addition, the focus on expanding charging infrastructure, incentivising electric buses for public transport and ramping up domestic battery production marks a decisive move in India’s EV revolution. The continued subsidies under the FAME scheme will make EVs more affordable and accessible to consumers. This strong policy push not only paves the way for rapid adoption of EVs but will also create jobs, reduce dependence on fossil fuels and position India as a global leader in sustainable transportation.”
Drawing on the same lines, Tata Technologies Managing Director Warren Harris said, “The establishment of five National Centres of Excellence for Skilling is a pivotal move in building a future-ready workforce. This initiative resonates with our commitment to engineering a better future for India's youth through investment in in-demand training programs across Industry 4.0, IoT, and advanced manufacturing and collaborating with state governments to upgrade ITIs into technology hubs.”
TapFin Co-founder Aditya Singh said, “The budget’s emphasis on cleantech manufacturing, including incentives for electric vehicle batteries and the additional 10 GW support for grid-scale batteries, signals a significant shift for India’s electric mobility sector. Strengthening domestic production will foster innovation, reduce dependence on imports, and open new growth opportunities.”

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Rolls-Royce Motor Cars has marked the conclusion of its year-long partnership with Aldingbourne Trust by presenting the charity with a series of exclusive artworks. These pieces were created by the luxury marque’s in-house design team and inspired by a wooden model gifted to Rolls-Royce by the Trust late last year.

That model, named the ‘Sapele Shadow’ after the wood used in its construction, was made by the Wood@Aldingbourne team as a gesture of gratitude when Rolls-Royce delivered its final donation. Now displayed at the company’s Goodwood headquarters, the handcrafted vehicle prompted one of the marque’s designers to reinterpret it digitally using the same advanced rendering software applied for client commissions.

Only three framed prints of this original artwork have been produced, each signed and numbered by the designer. One is set to be displayed in the Aldingbourne Trust café, another has been presented to the Wood@Aldingbourne workshop and the third will be auctioned to support the charity during the Goodwood Members’ Meeting in April.

Wood@Aldingbourne is one of over a dozen social enterprises run by the Trust, which has supported more than 1,500 individuals with learning and physical disabilities since its founding in 1978. Operating as a self-funding environmental group, it collects and repurposes reclaimed wood from local sources, including the Rolls-Royce site. All materials are either transformed into handmade goods for sale or used to fuel the Trust’s biomass boiler.

The relationship between Rolls-Royce and Aldingbourne Trust extended beyond fundraising throughout 2024, with colleagues contributing both time and resources. This ongoing collaboration reflects the meaningful connections formed when employees engage with their chosen House Charity, often resulting in support that endures well beyond the official partnership.

Andrew Ball, Head of Corporate Relations, Rolls-Royce Motor Cars, said, “It was a privilege to work with Aldingbourne Trust as our House Charity in 2024. When we presented the final donation cheque, we received an unexpected gift – a model car made in Sapele wood by the Wood@Aldingbourne team. This delightful model inspired one of our designers to create a unique digital rendering, just as we would for a real client commission. We’re delighted that this artwork will be displayed in the Trust’s café and will also be offered as a significant prize in a fundraising auction. It’s a pleasure to extend our support for this wonderful organisation beyond 2024.”

Abigail Rowe of Aldingbourne Trust said, “We were so appreciative of the fundraising efforts by Rolls-Royce staff, and the tremendous awareness we were able to generate through being their House Charity. It’s wonderful that the relationship has continued through this collaboration, which meant so much to the client who created the original wooden model, and will help raise further money for us. We’d like to thank the whole Rolls-Royce team, and particularly the talented designer who created these images for us.”

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In a collaboration that fuses past and present motorsport excellence, Caterham and its Surrey-based retail partner HWM have unveiled the Seven HWM Edition. This limited-edition model pays tribute to the celebrated 1951 HWM-Alta Grand Prix car, a machine that helped define an era for British racing.

The Seven HWM Edition is limited to just 19 units for the UK market, each priced from GBP 57,990. Every example features a distinctive HWM Green exterior, a colour meticulously matched to the original 1951 racer. Design cues drawn directly from its predecessor include bespoke side panel louvres, a unique nosecone grille and suspension components finished in Retro Grey. Additional touches such as a custom HWM nosecone badge and a central chrome fuel filler cap reinforce the connection.

Inside, the hand-turned aluminium SuperSprint dashboard continues the tribute, equipped with classic SMITHS chrome instrumentation, a solid metal cut-off switch and a polished wood-rimmed Moto-Lita steering wheel. The cabin is completed with optional leather or composite seats bearing the HWM logo, while chrome accents on the gear knob and handbrake add refinement.

Mechanically, the car is rooted in the Seven 420, powered by a 210 bhp 2.0-litre Duratec engine. With a power-to-weight ratio of 375 bhp per tonne, it delivers exhilarating performance, accelerating from 0 to 60 mph in just 3.8 seconds. A numbered dashboard plaque, indicating its exclusivity, is fitted to each of the 19 cars.

HWM, originally established in 1938 as Hersham and Walton Motors, built its reputation as the first British team to claim a Grand Prix victory after the war. Yet it was the 1951 HWM-Alta that truly solidified its place in history, securing numerous international podium finishes with a roster of drivers that included the legendary Sir Stirling Moss. Now primarily a luxury sports car specialist, HWM became an official Caterham retailer for the South East in 2023, making this partnership a natural extension of its longstanding connection to performance engineering.

Trevor Steel, Senior Vice President of Operations & CFO, Caterham Cars, said, “It’s been a real privilege to work with HWM on this special limited edition. Drawing inspiration from the legendary HWM-Alta racer, this car pays tribute to Walton-on-Thames’ rich racing heritage while celebrating the lightweight, driver-focused ethos that defines what Caterham is today. Bringing together two iconically British brands with deep roots in motorsport made this project especially meaningful. It reflects a shared commitment to engineering purity, performance and craftsmanship – values that have shaped both our histories and continue to drive us forward. We’re proud to honour that with a car created for true enthusiasts.”

Guy Jenner, CEO, HWM, said, “We are immensely proud to celebrate HWM’s remarkable history as a works team and grand prix car constructor. This project has given us a unique opportunity to tell the story of how a small outfit from Walton-on-Thames took on the greatest teams in European grand prix racing during one of motor racing’s most inspiring eras. Our sincere thanks go to Caterham for being such an enthusiastic and committed partner. Each of the 19 hand-built cars showcases exquisite detailing, with an outstanding sense of quality and craftsmanship.”

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Amazon Pay has announced the expansion of its vehicle insurance sector, establishing partnerships with HDFC ERGO, ACKO and ICICI Lombard. The service provides insurance coverage for 280 million vehicle owners across India, including 250 million two-wheeler and 30 million car owners.

The platform allows users to purchase policies through the Amazon app. The system is designed to reduce common friction points by eliminating the requirement for physical inspections of two-wheelers and removing sales calls during the procurement process.

Policies are issued digitally and made available on the customer's orders page. The service includes access to cashless claims processing at a network of more than 9,000 garages nationwide. This network extends beyond metropolitan areas to include Tier 2 and Tier 3 cities such as Coimbatore, Gwalior and Jhansi.

Amazon Pay insurance offers 100 percent digital onboarding/issuance with minimal documentation. Payments via Amazon Pay with associated cashback options and ability to compare premiums from multiple insurers. Amazon Prime users also get specific discounts by insurers.

The expansion aims to address insurance penetration in India, where data indicates that 70 percent of registered two-wheelers remain uninsured. By partnering with established insurers, Amazon Pay intends to provide a financial safety net for road users in regions where access to such services has previously been limited.

Vikas Bansal, CEO, Amazon Pay India, said, “Amazon Pay strives to innovate for every Indian, simplifying lives and fulfilling aspirations by solving for their payment and financial needs. Our latest expansion of the vehicle insurance portfolio is a direct reflection of that commitment. With more than 70 percent of India's registered two-wheelers uninsured, we are focused on driving deeper insurance penetration into tier 2 and tier 3 cities where access has been limited by partnering with India's most trusted insurers to bring a comprehensive cashless garage network, we are not just offering a service – we are providing a critical safety net for millions of road users and helping to build a more financially secure society.”

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Recreatives Industries, the company behind the iconic MAX 6x6 Amphibious All-Terrain Vehicles, has announced a new partnership aimed at broadening its market reach. The manufacturer has signed a national representation agreement with TRL Outdoors LLC, known for Muddog Amphibious Vehicles. This collaboration is designed to accelerate the growth of the MAX dealer network while reinforcing the brand's ongoing push into utility, industrial and commercial sectors.

As per the agreement, TRL Outdoors will represent the full range of MAX vehicles across the entire country. The move is intended to strengthen nationwide coverage and foster a more structured and sustainable expansion of the dealer base. The representatives bring significant industry experience to the table, having previously worked with manufacturers of high-end industrial amphibious vehicles, whose prices often started well above USD 100,000. This background positions them to effectively introduce the more cost-effective MAX platforms to a market accustomed to substantially higher-priced equipment.

The agreement includes a framework of quarterly performance goals focused on integrating new dealers, increasing market share and enhancing brand visibility. This structured approach is intended to ensure growth is both disciplined and sustainable. With the upcoming availability of models like the MAX 4 and Buffalo, the company is confident that TRL Outdoors will be instrumental in penetrating new sectors. The core strategy hinges on offering capable amphibious performance at a price point significantly lower than many established industrial alternatives. This partnership represents a key step in the company's broader plan to solidify its dealer network and secure long-term, measured growth.

Andrew Lapp, CEO, Recreatives Industries, said, “This agreement aligns with our strategy of expanding deliberately and building a high-quality dealer network. TRL Outdoors has firsthand experience selling premium amphibious vehicles into demanding commercial environments. Their understanding of dealer development, combined with MAX’s proven designs and compelling value proposition, positions us well as we expand into new regions and applications.”

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