India’s EV growth accelerates with multi-fuel push: Report
The report highlights that while petrol and diesel vehicles still dominate the roads, the shift toward cleaner mobility is gaining strong momentum
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New Delhi: India is rapidly moving toward sustainable mobility through a mix of electric, hybrid, and alternative fuel vehicles, a new report said on Thursday.
The data compiled by the India Energy Storage Alliance (IESA), titled “Automotive Electrification in India Market Report,” was released under IESA’s e-mobility initiative, the India Electric Mobility Council (IEMC).
As the world’s fourth-largest automobile producer, India is at a crucial turning point in its automotive journey. The report highlights that while petrol and diesel vehicles still dominate the roads, the shift toward cleaner mobility is gaining strong momentum.
Government policies, industry investments, and rising consumer awareness are all pushing the country toward a more sustainable transport future. Several states, including Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu, are leading the way in electric vehicle (EV) adoption. These states together account for more than half of India’s total EV sales. They are actively supporting the transition by promoting local EV manufacturing, improving charging infrastructure, and creating dedicated mobility clusters. The IESA report points out that India’s journey toward cleaner transport is unique because it is following a multi-fuel, multi-pathway approach. Alongside battery-powered electric vehicles, there is growing interest in compressed natural gas (CNG), hybrid, flex-fuel, and hydrogen-powered vehicles. Each of these technologies plays a role in reducing emissions and addressing different transportation needs.
To support this shift, the government’s upcoming Corporate Average Fuel Efficiency (CAFÉ 3) norms, set to take effect from April 2027, will reward automakers that produce more zero- and low-emission vehicles.
These norms introduce new incentives -- known as volume derogation factors -- for vehicles powered by batteries, hybrids, and alternative fuels. Debmalya Sen, President of IESA, said that policy support is vital for driving this change and shaping consumer choices. He added that while some states are advancing directly to zero-emission vehicles, others are taking a gradual route through alternative fuels, depending on their market readiness and infrastructure.
