The Society of Indian Automobile Manufacturers (SIAM) has welcomed the Union Budget 2026–27, noting that the government’s focus on manufacturing, infrastructure expansion and electric mobility is expected to strengthen the automotive sector over the long term. SIAM President Shailesh Chandra, who is also MD & CEO of Tata Motors Passenger Vehicles Ltd, said the Budget reflects a continued commitment to sustainable economic growth backed by investments in manufacturing, key infrastructure projects such as freight corridors and waterways, and fiscal discipline.
He pointed out that the increase in the capital expenditure target to Rs 12.2 lakh crore for FY 2026–27, up from Rs 11.2 lakh crore in the current year, is likely to stimulate demand and drive industrial activity, including in the automobile industry. SIAM also highlighted measures aimed at strengthening supply chains and boosting exports, including increased support for electronic components manufacturing, proposed corridors for mining and processing rare earth materials, initiatives to set up high-tech tool rooms, and steps to support container manufacturing.
The Budget’s provision for 4,000 electric buses for the Purvodaya States was also seen as a significant step toward cleaner and more sustainable public transport. Further, SIAM welcomed the continued exemption of Basic Customs Duty on capital goods used in lithium-ion battery manufacturing. The industry body also noted the extension of concessional duty benefits for lithium-ion cells and parts used in batteries for electric and hybrid vehicles for another two years, until March 2028, as a move that can help build a stronger EV ecosystem in India.
The Society of Indian Automobile Manufacturers (SIAM) is the apex national body representing major vehicle and vehicular engine manufacturers in India. Registered under the Societies Registration Act, 1860, SIAM works to strengthen the automobile industry’s contribution to India’s economic development, support the industry’s social responsibilities, and promote efficiency across the sector. SIAM also focuses on initiatives related to environmental improvement, road safety, and user protection. The organisation is registered under the Income Tax Act, 1961 as an institution with charitable purpose.
