As the Union Budget 2025 nears, two-wheeler manufacturers are hopeful for measures that could revive rural demand and accelerate the transition to electric mobility. The government’s emphasis on boosting consumption and increasing disposable income for the general public is anticipated to greatly benefit the rural-centric two-wheeler segment.

The industry is hopeful that a revision in income tax slabs will leave consumers with higher disposable incomes, driving discretionary spending in rural areas. This, in turn, could provide a much-needed lift for entry-level two-wheelers, a critical market for manufacturers.
Market veterans highlight the importance of accessible financing options, noting that making electric two-wheelers affordable in both urban and rural markets is key to unlocking their full potential.

The sector is also urging continued support for electric vehicles, particularly through an extension of the FAME-III subsidy beyond March 2025. Direct incentives to strengthen the EV supply chain, especially for batteries, are viewed as crucial for reducing import dependency and boosting domestic value addition.

Stakeholders are pushing for performance-linked incentives to strengthen local manufacturing and position India as a global leader in EV technology.

Another key demand is simplifying the Goods and Services Tax (GST) structure. Industry stakeholders are pushing for a uniform 5 percent tax rate across electric vehicles (EVs), components, and charging infrastructure, arguing that it would lower costs and stimulate growth.