India's automotive sector is transforming with growing demand for energy-efficient internal combustion and electric vehicles, despite rising costs of essential components. The traction battery market is projected to grow significantly, driven by government initiatives and consumer awareness. However, stakeholders must address pricing pressures and supply chain challenges to sustain momentum.

The Union Budget 2026 emphasizes electric vehicle and clean energy development through infrastructure enhancements and manufacturing support, including customs duty exemptions for lithium-ion cell production. It allocates ₹10,000 crore for MSME growth and promotes battery recycling. This balanced approach aims to foster sustainable economic growth while reducing import dependency in India’s energy sector.

Ashok Leyland, the Indian flagship company of the Hinduja Group and a global leader in commercial and defence mobility solutions, has signed a landmark...