As India’s electric vehicle (EV) industry enters a decisive scale-up phase, industry stakeholders are looking to the Union Budget for FY 2026–27 for targeted demand-side incentives, fiscal support for localisation of critical components, and accelerated expansion of charging infrastructure to boost adoption—especially in commercial and fleet segments.

“This is a critical time for the EV industry where we are seeing the industry move from early adoption to scaling,” Bharath Krishna Rao, co-founder and CEO of Emobi, said. He added that the sector needs “critical intervention from the government side” through policy support across both demand and supply chains.

Rao said the industry is seeking incentives to drive mass and commercial EV adoption, alongside fiscal and policy backing for domestic manufacturing of key components such as batteries, cells, motors and controllers. He noted that increased localisation would help ease cost pressures and reduce dependence on imports.

Infrastructure remains a major bottleneck, Rao said, calling for greater standardisation and expansion of charging facilities across vehicle categories. “This support should also be extended for setting up standardisation of charging infrastructure and the right charging infrastructure for multiple vehicles — not only for two-wheelers and three-wheelers but four-wheelers as well as commercial vehicles,,” he said.

According to Rao, while 2025 witnessed growth in business models and volumes across EV segments, 2026 is expected to be driven largely by adoption among fleets, logistics operators and heavy commercial vehicles.

“This growth will be driven at the back of charging infrastructure which is being established by private players. However, the right support from the government would help go a long way in stabilising this infrastructure required for growth,” he said.

Rao also highlighted challenges stemming from interest rate uncertainty and volatility in the supply of battery raw materials, particularly cells. He stressed the need for faster localisation and stronger coordination between the Centre, states and industry stakeholders to build a resilient and sustainable EV ecosystem.

With EV adoption increasingly shifting towards commercial applications, the upcoming Union Budget is being viewed by the industry as a crucial opportunity to provide long-term policy clarity and strengthen India’s electric mobility roadmap.

Emobi, a Bengaluru-based electric vehicle startup founded in 2021, specialises in the design, engineering, and production of reasonably priced and long-lasting electric two-wheelers for personal mobility, last-mile delivery, and business-to-business logistics. The company specialises in lean manufacturing, swappable battery technology, Internet of Things (IoT) integration, and frugal engineering.