Budget 2026: Kinetic MD Urges Extension of PM E-Drive and New "Pollution Tax" on Petrol Cars

As the countdown to the Union Budget 2026 begins, the Indian electric vehicle (EV) industry is making its voice heard. Mr. Ajinkya Firodia, Vice Chairman & Managing Director of Kinetic Watts & Volts Ltd, has outlined a bold roadmap for the government to ensure India remains a global leader in clean mobility.

With EV adoption at a critical "sunrise" stage, Firodia highlighted that the transition is no longer just about the environment it is about value creation for the common citizen through lower fuel costs and smart technology.

Key Budget Expectations for the EV Ecosystem

To maintain the current momentum, the industry has placed several high stakes requests on the table:

• Extension of PM E-Drive Policy: There is a strong call to extend flagship initiatives like the PM E-Drive scheme. With current incentives for two wheelers and three wheelers slated to reach their targets soon, a continued subsidy framework is seen as essential to keep EVs affordable.

• The "Pollution Linked" Tax: In a move to balance the fiscal budget, Firodia suggested a calibrated tax on high-emission ICE (petrol/diesel) vehicles. This "polluter pays" model could fund further EV incentives without straining the national treasury.

• Scrappage Incentives 2.0: The industry is pushing for higher rewards for citizens who choose to scrap their old, polluting internal combustion engine vehicles and switch to electric, accelerating the "fleet renewal" process.

• PLI Framework for Startups: While large players benefit from existing schemes, Firodia emphasized the need for a dedicated PLI framework for mid scale entrepreneurs and startups. This would empower homegrown Indian brands to innovate and compete with global giants.

• R&D and "Atmanirbhar" Batteries: Highlighting the ₹1 lakh crore RDI fund, the focus is on reducing India’s dependence on imported lithium and rare earth minerals through deep-tech domestic research.

Why This Matters to You

For the average consumer, these budget decisions will directly impact the on road price of electric scooters and cars in 2026. If the government accepts these recommendations, we could see a more robust charging network and even better exchange value for old petrol bikes.

As Mr. Firodia noted, "The future of innovation, manufacturing, and leadership clearly belongs to India." All eyes are now on the Finance Minister to see if the Budget will provide the "electric" spark the industry is waiting for.