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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From 1 April 2025, all drivers in Mumbai will have to pay tolls using FASTag at every toll plaza. This is in line with Maharashtra State Road Development Corporation’s (MSRDC) announcement some time ago regarding a FASTag-only system to make toll payments, which would facilitate quicker and easier passage of vehicles through toll gates. But that is not the key news. The key news is that the toll on the Mumbai-Pune Expressway will rise by three percent from 1 April 2025. This hike is expected to dig a hole of up to INR 10 in every passenger car owner every time he gets on the respective expressway. 
Fully operationalised in April 2002, the Mumbai-Pune Expressway – first of its kind in India – was built on a BOT basis. It cost more than INR 16.3 billion to complete, according to a report found on the Magicbricks.com website dated 5 February 2025. An analysis in 1994 estimated the cost to be INR 11.46 billion. 
In its affidavit in response to a PIL filed in the Bombay High Court in 2019 citing a CAG report, MSRDC – the Maharashtra state’s special vehicle that built the respective expressway – mentioned that the CAG failed to consider aspects such as traffic flow in initial years, fluctuation in interest and value of money at the time when the first contract was awarded in 2004. 
After taking into consideration the internal rate of return at 16 percent, the total amount recoverable in 2021 was INR 223.7 billion (22,370 crore), MSRDC is known to have stated in its affidavit filed by Kamlakar Phand, Chief General Manager, MSRDC, justifying the extension of contract to collect toll.  
Known as India’s highest toll collecting expressway and also the costliest, the toll collection across the nine gates of the expressway in FY2022-23 was an estimated INR 480.28 billion (48,028.22 crore). In FY2023-24, it was an estimated INR 648.09 billion (64,809.86 crore), a 35 percent increase from the previous year. The average daily collection of around INR 1.5 billion in FY2023-24 in the respective fiscal marked an all-time high. 
But then it is not just the Mumbai-Pune Expressway that will see a hike in toll tax, driving in turn the cost of consumables, essential goods etc., up, the National Highways Authority of India (NHAI) will also increase the toll tax on national highways and expressways that it governs, effective 1 April 2025, mention sources. 
This hike will also touch two-wheelers as stretches such as the Delhi-Lucknow expressway are known to charge toll from that class of vehicles as well. The toll tax increase, sources say, will be in line with the tradition to yearly revise the charges to account for changes in the wholesale price index (CPI)-based inflation. 
Not stopping there and not taking into account the poor quality as well as sheer unsafe stretches of key highways such as the one connecting Pune with Belgaum, which is said to have been under construction for many-many years now, or the one that connects Mumbai with Goa, motorists of all class of vehicles, two-wheelers included, should brace themselves to see their pockets burn a bigger hole effective 1 March 2025 as road fines increase. 
Not supposed to complain about bad road surface, unsafe road design, crater-like patches or the suddenly appearing speed humps and simply pay the roll tax, motorists found to be under the influence of alcohol will have to pay a fine of INR 10,000 and/or face a six months term in prison for the first offence. Repeat offenders will have to pay INR 15,000 and may face up to 2 years in prison.
Those riding without helmets will have to pay INR 1,000 (earlier it was INR 100) and face license suspension for three months. Failing to wear a seat belt, the fine will be INR 1,000. 
Found talking on the phone while driving, the fine will be INR 5,000. Found driving without a valid driving license, the fine will be INR 5,000. Riding triple seat on a two-wheeler, the fine will now be INR 1,000. Sans a valid insurance (insurance attracts 18 percent GST whereas buying a vehicle amounts to between 28 to 50 percent of the price being taxes!), the fine will now be INR 2,000. Besides three months of imprisonment and community service, a repeat offence will see the fine double to INR 4,000. 
The absence of pollution certificate will attract a fine of INR 10,000 along with a prison sentence of six months and community service. Dangerous driving and over speeding with attract a fine of INR 5,000 each here after. Blocking of emergency vehicles will lead to a fine of INR 10,000. Overloading of commercial vehicles will lead to a fine of INR 20,000. 
Jumping a red signal will attract a fine of INR 5,000. Earlier it was INR 500. Offence committed by juveniles behind the wheel or handlebar will lead to a fine of INR 25,000 rather than INR 2,500. A prison sentence of three years and cancelation of vehicle registration for a year besides ineligibility to get a driving license till the age of 25 will be there too. 

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South Korean auto major Hyundai Motor Company, along with its Robotics LAB, has won 18 iF Design Awards for 2025 for its design and innovation across sectors.

Established in 1954, the iF Design Award honours innovative designs across the globe. The two-stage selection process saw over 10,800 designs being evaluated from more than 72 nations.

The Korean major marked 11^th consecutive year of recognition at the iF Design Awards. For 2025, Hyundai Motor received 18 awards across eight disciplines and 12 categories.

SangYup Lee, Executive Vice-President and Head of Hyundai and Gensis Global Design, said, “This recognition from iF Design Award is a testament to the exceptional dedication exhibited by our team of visionary designers and collaborative engineers. It highlights the remarkable competitiveness of Hyundai’s design identity within the global market.”

Tata Motors, a leading passenger vehicles and commercial vehicles manufacturer, has further strengthened its Board with the appointment of Gunter Butschek as Additional Non-Executive Independent Director for five years (1 May 2025 to 30 April 2030).

This marks a homecoming for Butschek, who played a key role for Tata Motors as its Chief Executive Officer from February 2016 to June 2021. He can be credited with the Tata Motors Turnaround 2.0 strategy, which saw the automaker regain lost ground in the passenger vehicle segment and expand market share in the commercial vehicle segment.

Butschek has global experience as a professional leader of multinational companies in countries such as South Africa, China, India, South Korea and Europe. A turnaround and transformation specialist, he has been associated with companies such as Airbus and Daimler Group, to name a few.

He currently serves as the CEO of Germany-based Cubonic, which is working on customisable light commercial vehicle solutions offering automated to autonomous driving capabilities. Butschek is also associated with UK-based Cheesecake Energy as a Non-Executive Director from 1 February 2023.

Kush Maini has become the first Indian driver in Formula 1 since 2012 by joining the BWT Alpine Formula 1 Team as their latest reserve driver for the 2025 season.

This new development not only marks the end of a 13-year hiatus for an Indian to be part of an F1 team but also makes Maini the only Alpine F1 reserve driver actively competing in the Formula 2 Championship, where he will be racing for Dams Lucas Oil. He is a valuable asset for the forthcoming campaign because of his position as the BWT Alpine F1 Team's Formula 1 Reserve and Test driver. Kush will keep testing the F1 vehicle to obtain useful knowledge and offer input in order to support the team and enhance his own growth and performance.

Last season, Maini impressed stakeholders with his performance in each of the four tests he did with the BWT Alpine F1 Team. With five podium finishes and a memorable win in Hungary, the young Indian driver had an outstanding Formula 2 season the previous year and was instrumental in Invicta Racing's Teams' Championship victory for the 2024 F2 season. In Jeddah, he also created history by being the first Indian driver to win a Formula 2 pole position. 

Maini said, "Being a reserve driver for the BWT Alpine F1 Team is an incredible opportunity and a moment of immense pride for me and my family, as it’s been my dream to represent Tricolor in F1. This is a once in-a-lifetime opportunity, and I’m deeply grateful for the trust the team has placed in me. I’m excited to kickstart 2025 and continue this remarkable journey.”

Julian Rouse, Director, Alpine Academy, said, “We are very happy to announce the expansion of Kush’s role in the Alpine Academy to include Test and Reserve Driver duties for the team this season. Kush has impressed the team across his TPC performances and Formula 2 results whilst we have been working with him, and we expect he will continue to do so in 2025. His wider role allows us to further expand our pool of driving talent who can provide support and resource to the whole team during the busy season.”

Mentor Mika Hakkinen said, “Kush’s inclusion into the BWT Alpine F1 team for 2025 as a reserve and test driver is a big step forward not only for his journey but also for Motorsport in India. As his mentor, I’ve seen his dedication and talent firsthand, and this recognition was long due.  This is an exciting time for motorsport in India, and Kush is leading the way for the next generation. The journey is just beginning – let’s support him all the way!”

Ajit Ravindran, MD, Meraki Sport & Entertainment, said, “Having this kind of representation in Formula 1, the pinnacle of motorsport, is a significant moment for India. This development opens valuable opportunities for brands to tap into Kush’s global reach and engage with a wide and diverse audience.”