Before the Union Budget 2026, the biggest question among electric vehicle (EV) buyers was whether EV cars would become cheaper or more expensive.
Finance Minister Nirmala Sitharaman made several important announcements for the EV sector in the budget.
However, these changes will not affect EV prices immediately. Their impact will be seen mainly in the long term.
EV Prices After Budget 2026
After the budget presented on February 1, 2026, the ex-showroom prices of EV cars have remained the same. The government has not reduced GST and has not announced any direct subsidies.
For example, the Tata Nexon EV is still priced between ₹14.50 lakh and ₹18.50 lakh.
Import duties of 5% to 10% on battery raw materials are still applicable. Because of this, manufacturers cannot significantly reduce production costs, so customers do not get cheaper EV prices.
Have EVs Become More Expensive?
The good news is that no new taxes have been imposed on EVs. The budget has not introduced any policy that puts EVs at a disadvantage compared to petrol or diesel vehicles.
So, for now, EV cars have neither become cheaper nor more expensive.
Major Announcements for the EV Sector
PM E-Drive Scheme
The government will support a Super EV app. This app will help users find charging stations, make charging payments, and connect with service networks. This will make using EVs more convenient.
Extension of the PLI Scheme
The government will promote battery gigafactories, battery recycling, and spare parts manufacturing. This could reduce battery repair costs in the future and help lower the current 18% cost.
9% Increase in Capital Expenditure
Capital expenditure has been increased to ₹12.20 lakh crore. This will support power grid expansion, EV charging infrastructure, and maintenance of charging stations.
Budget 2025-26 vs Budget 2026-27: What Changed?
In Budget 2025-26, the FAME-II subsidy was already discontinued. At that time, the government focused on technology support through India AI and Quantum missions.
In Budget 2026-27, the focus shifted from direct subsidies to local manufacturing and service infrastructure. Battery manufacturing has also been strengthened through the PLI scheme.
Should You Buy an EV Now?
EV prices will not drop immediately, but battery costs are expected to fall in the coming years. This will improve the charging network and make EV usage more affordable.
The Union Budget 2026 shows that the government considers EVs a long-term solution rather than a short-term discount. If you are planning to buy an EV, there is no need to be disappointed.
Even though prices have not decreased now, EVs are likely to become cheaper, easier, and better in the future.
