Automobile

Union Budget 2025: Key Announcements for the Automobile Sector You Need to Know

Union Budget

On February 1, 2025, Finance Minister Nirmala Sitharaman will present the Union Budget for the financial year 2025-26. The automobile sector is expected to bring in many important reforms from this budget, which can promote new innovation and new technologies.

Experts hope – If there are big announcements related to the automobile sector on the day of the budget, then its direct impact will be seen on the shares of companies related to this sector.
The government can make announcements in Budget 2025 about which schemes related to the automobile sector this year.

1. GST rate cut on hybrid and electric vehicles

2. Extension of PLI Scheme for EV Components

3. Incentives for research on hydrogen fuel

4. Encouragement of Vehicle Scrapping

Know in detail about these announcements of Union Budget

Know in detail about these announcements of Union Budget

Reduction in GST rate on hybrid and electric vehicles

The automobile industry demands that the Goods and Services Tax (GST) rate on hybrid and electric vehicles be reduced from 28 percent to 18 percent. This move will encourage the adoption of eco-friendly vehicles and will be in line with the government’s vision of a green and sustainable future.

Expansion of PLI scheme for EV components

The Production-Linked Incentive (PLI) scheme is likely to be expanded in Budget 2025, especially for electric vehicle (EV) components and battery manufacturing. This will help make India a global EV production hub and accelerate green mobility solutions.

Incentive for research on hydrogen fuel

Special incentives are expected for research on hydrogen fuel and advanced mobility. Along with this, policies can be brought to develop strong charging infrastructure across the country, which will further accelerate the process of EV adoption.

Incentive for vehicle scrapping

New schemes and clear policies can be announced in the budget to encourage the scrapping of old vehicles. This will not only increase the demand for new vehicles but will also reduce environmental pollution.

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