The Society of Indian Automobile Manufacturers (SIAM) has welcomed the Union Budget 2026–27, saying its strong emphasis on manufacturing, infrastructure and electric mobility will provide long-term support to the automotive sector.
Shailesh Chandra, President of SIAM and MD & CEO of Tata Motors Passenger Vehicles, said the Budget reflects a balanced approach focused on economic growth, industrial expansion and fiscal discipline.
He highlighted the rise in capital expenditure to ₹12.2 lakh crore for FY27, up from ₹11.2 lakh crore in the current year, as a key driver of demand creation and industrial activity, including in the automobile sector.Chandra also pointed to enhanced policy support for electronics manufacturing, the development of dedicated corridors for rare earth mining and processing, and investments in high-tech tool rooms and container manufacturing. These measures, he said, would strengthen domestic supply chains and boost export competitiveness.SIAM further welcomed the allocation for 4,000 e-buses for Purvodaya States and the continued exemption of basic customs duty on capital goods used for lithium-ion battery manufacturing. The extension of concessional duty benefits for lithium-ion cells and components until March 2028 is expected to accelerate the development of a robust electric vehicle ecosystem in India.
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