Motorist Expectations Ahead of the 2025 Budget

As Mauritius approaches the 2025 budget announcement, anticipation is building across the motoring community. Dealers, drivers, transport operators and automotive businesses are all looking to government policy for direction on pricing, investment, and the shift towards cleaner vehicles.

While no official measures have been confirmed, discussions around the upcoming budget suggest a continued focus on sustainability, affordability, and economic resilience. Here's what motorists and industry players are watching closely.

Support for Public and Private Transport Expected to Continue

Public transport stakeholders are hoping to see an extension of existing schemes, such as the Bus Modernisation Scheme, which has helped bring newer, more efficient buses into circulation. With operating costs rising and pressure on fares, financial support for transport operators could be key to maintaining reliability and accessibility.

Taxi owners are also paying close attention. In recent years, incentives such as VAT exemptions, easier license transfers, and subsidised loans have allowed many to upgrade ageing vehicles. If these support measures are maintained or expanded in the 2025 budget, it could bring further relief to this critical part of the transport network.

Electric Vehicle Momentum Likely to Remain a Focus

The government’s ambition to increase the share of electric vehicles (EVs) in Mauritius remains on the table. Many in the sector expect the next budget to reaffirm this direction, possibly with further incentives on EV imports or new investment in charging infrastructure.

For motorists considering an EV, clarity on upcoming policies will be important. With fuel prices remaining high and environmental awareness growing, expectations are rising for more concrete steps to make EV ownership practical and attractive.

Business Tax Incentives Could Shape Investment Plans

Businesses operating fleets or transport services are hopeful that the Investment Boost tax scheme or similar measures will be renewed. Allowing companies to deduct part of the cost of new vehicles or equipment can significantly influence purchasing decisions and fleet modernisation.

This is especially relevant for logistics providers, car rental companies, and dealerships, many of whom are planning for the year ahead based on what the budget will signal.

Cautious Optimism Around Pricing and Duties

One of the biggest questions remains whether vehicle excise duties will be adjusted. While reductions in previous years have supported demand, they have also contributed to fiscal pressures. Motorists and dealers are hoping that any changes will strike the right balance between affordability and economic responsibility.

For prospective buyers, especially those eyeing low-emission vehicles or newer imports, even slight changes in tax rates could make a significant difference.

An Industry in Transition

The automotive industry in Mauritius is evolving. EV registrations are rising, and interest in hybrid models is growing. Infrastructure remains a work in progress, but momentum is clearly building. What many in the sector want to see now is consistency: a long-term, predictable policy environment that supports greener choices, sustainable financing, and a modern transport system.

Conclusion

The 2025 budget has the potential to shape how Mauritius moves, both literally and strategically. While the exact measures are still unknown, the expectations are clear. Motorists, dealers and business owners are looking for support that promotes affordability, rewards investment, and accelerates the shift to cleaner, more efficient vehicles.

Whatever is announced, the response from the automotive sector will depend on how well the budget aligns with these goals — and how clearly it charts the road ahead.