Budget 2026 Expectations: With the Union Budget around the corner, leaders from India’s auto industry are urging the government to maintain a steady policy path while creating conditions that can energise consumer demand and long-term growth.
The sentiment from manufacturers suggests that the sector, already reshaped by GST reforms, now needs predictability, supportive duty structures, and broader economic momentum to unlock its next phase of expansion.
Volvo Car India Sees Opportunity In Policy Continuity
Jyoti Malhotra, Managing Director, Volvo Car India, believes the upcoming Budget presents an opportunity to reinforce confidence in the sector through consistent and clear policymaking.
“As the automotive industry looks ahead to the upcoming Union Budget, continuity and clarity will be critical.”
He noted that after GST reforms, the industry is at an important point where stable support can “help accelerate recovery and stimulate long-term demand.”
Malhotra also pointed to the importance of a rational duty structure and the role of incentives in encouraging global automakers to deepen their investments in India. He added that “the government’s focus on expansion of charging infrastructure in the country will act as an impetus to green mobility.”
According to him, such steps can “strengthen India’s position as a progressive automotive market” and further the shift towards “cleaner, safer and more sustainable transportation.”
Maruti Suzuki Highlights Importance Of Consumption Momentum
Maruti Suzuki India echoed the importance of broader economic activity in shaping the sector’s outlook.
The country’s largest carmaker expects its retail sales to grow around 3.5 per cent in the fourth quarter, in line with the trend seen across the previous three quarters of FY25.
“I think most of the activities that take place, which are consequential to the auto industry, are now in GST. But if there is any general improvement in the consumption momentum in the country, that would be good for all,” Maruti Suzuki India Executive Director (Corporate Affairs) Rahul Bharti said during a post-Q3 results analyst call.
Budget Seen As A Confidence Booster For The Sector
Together, the comments from both companies underline a common expectation. The industry is looking for policy consistency, supportive frameworks, and measures that can strengthen consumer confidence.
As the Budget approaches, automakers see it as a moment to reinforce stability, encourage investment, and build momentum for the next chapter of growth in India’s automotive market.
