India’s EV adoption driven by multi-fuel pathway to sustainability: IESA report

India’s First Dedicated Highway Corridor for EVs coming soon

The India Energy Storage Alliance (IESA), through its e-mobility initiative called India Electric Mobility Council (IEMC) has recently launched ‘Automotive Electrification in India Market Report,’ which highlights key electrification trends in the country’s automotive industry.

The IESA report says that as the world’s fourth-largest automobile producer, India possesses both the scale and potential to become a global leader across the automotive value chain. The Indian automotive sector stands at a pivotal juncture, with electrification and a renewed focus on sustainable mobility reshaping not only vehicle powertrains but the entire ecosystem. While petrol and diesel powertrains continue to dominate, the increasing prevalence of sustainable mobility fuels, driven by enabling policies and growing awareness underscores a growing consensus among OEMs, governments, and consumers that environmentally sustainable mobility is no longer a distant goal, but a rapidly emerging reality.

IESA also mentions that states are actively supporting a transition from conventional to alternative fuels by encouraging local EV manufacturing, investing in charging infrastructure, and developing dedicated mobility clusters and ecosystems. These efforts highlight the importance of a well-coordinated policy approach that aligns both central and state-level strategies to facilitate greater adoption of electric vehicles.

The report further emphasizes that India’s transition is unique due to its multi-fuel, multi-path approach. “While there is a clear focus on e-mobility, significant traction is also visible in compressed natural gas (CNG), hybrid, flex-fuel, and even hydrogen-powered mobility, each driven by specific use cases,” says IESA.

The updated Corporate Average Fuel Efficiency (CAFÉ 3) draft norms, applicable from 1st April 2027, introduce a volume derogation factor for alternate fuels to encourage manufacturers to increase sales of zero and low-emission vehicles, as detailed below:

Debmalya Sen, President of IESA, states, “This shift towards sustainable mobility, however, is not uniform across the country. Some regions are advancing directly to Zero Emission Vehicle (ZEV) adoption, propelled by proactive EV policies, robust manufacturing ecosystems, and investments in infrastructure. Other states are progressing through a phased approach, relying more on alternative fuel vehicles to bridge the gap. This multi-adoption approach reflects the varied levels of market maturity, readiness and local priorities across states.”

As the market continues to evolve, a balanced emphasis on both demand- and supply-side interventions is required. As India advances toward its Net Zero goals, it is crucial to facilitate a level playing field for environmentally friendly technologies, keeping the principle of technology neutrality in mind and encouraging the adoption of all technologies that align with the nation’s decarbonization objectives.

India Energy Storage Alliance

IESA is a premier industry body dedicated to promoting energy storage, e-mobility, and green hydrogen adoption in India. IESA works with policymakers, industry stakeholders, and research institutions to accelerate market development through policy advocacy, business networking, and thought leadership.