The Union Budget for 2026-27 comes at a very opportune time for the Indian automotive industry, which is presently dealing with moderating demand in certain segments, an increasing pace of the electric vehicle transition, and increasing global competition. Instead of making sectoral announcements, the budget is focused on the expansion of manufacturing, infrastructure development, supply chain sustainability, clean mobility, and building technological prowess. Industry associations and industry leaders in the automotive industry, including vehicle manufacturers, auto component manufacturers, EV startups, and related sectors, have pointed out that these policy thrusts cumulatively determine the future growth trajectory of the automotive sector.
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