By Abbas Nazil
India is taking significant strides toward sustainable transportation, driven by an urgent need to curb greenhouse gas emissions and combat climate change.
With transportation accounting for a substantial portion of national emissions, the government is fast-tracking initiatives like the adoption of E20 fuel by 2025 and expanding the electric vehicle (EV) ecosystem to achieve its carbon neutrality target by 2070.
In a move to enhance energy security and reduce dependence on imported oil, India is intensifying efforts to promote biofuels, green hydrogen, and electric mobility.
The adoption of E10 fuel in November 2022 marked a major milestone, cutting greenhouse gas emissions by 32 million metric tons over eight years and saving over INR 70,000 crores in import bills.
This success has set the stage for the rollout of E20 fuel by 2025, expected to further reduce emissions and create economic benefits, particularly for farmers.
The EV ecosystem in India is witnessing rapid growth, supported by collaborations between public and private sectors.
Key developments include the establishment of new charging stations, specialized EV loan offerings from financial institutions, and government-backed initiatives led by NITI Aayog and the Ministry of Heavy Industries.
These efforts have propelled EV penetration to 5% in FY24, with segments like electric three-wheelers (E3W) achieving a 19% market share and electric buses (e-buses) at 13%.
The Indian mobility market, valued at USD 651 billion in FY24, is projected to grow at an annual rate of 12%, reaching USD 1,257 billion by FY30.
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Within this, electric mobility—currently a USD 34 billion market—is expected to rise to USD 238 billion by FY30, driven by a compound annual growth rate (CAGR) of 38%. Passenger and commercial vehicles will be key contributors, with the EV penetration of two-wheelers and four-wheelers expected to increase significantly.
While the outlook for EV adoption is promising, challenges remain. High upfront costs, range anxiety due to limited charging infrastructure, and a reliance on imported components pose significant barriers.
Manufacturers face supply chain vulnerabilities, while service providers grapple with standardization issues and the high costs of setting up charging stations. Addressing these hurdles will require sustained regulatory support and industry innovation.
Biofuels and green hydrogen are also emerging as pivotal components of India’s clean energy strategy. India’s share of the global biofuels market stands at 3%, bolstered by government policies promoting ethanol, biodiesel, and biogas.
The transition to E20 fuel by 2025 and B5 biodiesel by 2030 is expected to cut emissions further, create over 5,000 jobs, and open new revenue streams for farmers and entrepreneurs.
Investments in hydrogen production for fuel cell electric vehicles (FCEVs) are also gaining momentum, although clearer plans are needed to scale up this technology.
The government’s commitment to fostering a robust EV ecosystem reflects its dedication to environmental sustainability and economic growth.
By incentivizing clean energy technologies, expanding charging infrastructure, and promoting public awareness campaigns, India aims to accelerate the transition to electric mobility.
The integrated approach—encompassing EVs, biofuels, and green hydrogen—positions the country as a global leader in the clean energy transition, aligning with its goal of achieving net-zero emissions by 2070.
India’s progress underscores the importance of collaboration among policymakers, industry stakeholders, and the public.
With innovation and collective action, the nation is poised to reshape its transportation sector and pave the way for a greener, more sustainable future.
