Davos (Switzerland): Vikram Gulati, Country Head and Executive Vice President for Corporate Affairs and Governance, Toyota Kirloskar Motor, has expressed confidence in the growth of the electric vehicle (EV) market, saying the segment is set to expand steadily in the coming years.
Speaking on the sidelines of the World Economic Forum 2026 in Davos, Gulati said the move towards sustainable mobility is clearly shaping the future of the auto industry. He noted that while electric vehicles will play a major role, other clean mobility options such as strong hybrid vehicles and alternative fuels will also contribute significantly to overall growth.
Recent government initiatives have supported this momentum. In December last year, it was reported that the PM E-DRIVE scheme enabled the sale of about 1.13 million electric vehicles. The scheme provides an incentive of ₹5,000 per kilowatt-hour, with a total outlay of ₹109 billion. Data shows the programme has achieved an annualised volume of 1.13 million vehicles, marking a sharp rise in EV adoption.
Gulati also welcomed recent tax reforms, saying reduced taxes have brought major benefits to consumers. He said government support for the auto sector, especially for electric vehicles, has been strong on both the demand and supply sides. According to him, measures such as income tax cuts and the rollout of GST 2.0 have put more money in the hands of consumers, lowered vehicle taxes and boosted demand across the automotive market.
He said the past year has seen a strong focus on reforms, which has helped drive growth in the auto industry and improved affordability for buyers.
Looking ahead, Gulati said he expects the government to continue its reform agenda in the upcoming Union Budget, scheduled to be presented on February 1. He pointed out that the last quarter has been particularly strong for the industry, with passenger vehicle sales reaching record levels. He added that continued emphasis on reforms, ease of doing business and infrastructure spending would help sustain growth across the economy.
Meanwhile, a recent report by Nuvama said the uptrend in passenger vehicle demand could continue until FY29. The report noted that the segment hit its lowest point in FY21, crossed its earlier peak in FY23, and is now on track to set new records, supported by GST reforms and a positive outlook for the auto sector.
