Budget 2026 Boosts EV Production, MSME Support, and Green Mobility: FADA

Budget 2026 Boosts EV Production, MSME Support, and Green Mobility: FADA

Mr. C.S. Vigneshwar, President, Federation of Automobile Dealers Associations (FADA)

“The Union Budget 2026-27 presents a robust roadmap for the various sectors transition toward a sustainable and technologically advanced future. We particularly welcome the governments commitment to the electric vehicle (EV) ecosystem by extending basic customs duty exemptions for capital goods used in manufacturing Lithium-Ion Cells,. This, combined with the establishment of Rare Earth Corridors in mineral-rich states to support permanent magnet manufacturing, will significantly bolster domestic EV production and affordability.

The push for green mobility is further strengthened by the provision of 4,000 e-buses for the North-East and Purvodaya regions, and the exclusion of biogas value from Central Excise duty on blended CNG,. These measures, alongside the India Semiconductor Mission 2.0, will help stabilize the supply chain for modern vehicles.

For our dealer community, many of whom are MSMEs, the ₹10,000 crore SME Growth Fund and the mandating of TReDS for settlement are pivotal steps toward improving liquidity and growth,. Additionally, the Income Tax exemption for interest awarded by Motor Accident Claims Tribunals (MACT) is a welcome relief for individual vehicle owners and victims,. Overall, this budget balances industrial scaling with consumer-centric tax reforms.”