There is a greater emphasis than ever on sustainable mobility solutions as the global automotive landscape changes. Recently, S&P Global Mobility lowered its electric vehicle (EV) market penetration estimate for India from 22% to 18.5% by 2030. This change reflects a more sophisticated awareness of the potential and difficulties that lie ahead, especially with regard to the emergence of hybrid technologies in the Indian automobile industry.
A number of variables, such as the electric passenger vehicle segment’s slower-than-expected adoption, infrastructure-related charging issues, state incentives that favor hybrid vehicles selectively, etc., are to blame for the modification in S&P’s EV prediction. These findings emphasize how crucial it is to match consumer desires with legislative frameworks in order to hasten the adoption of electric vehicles.
According to Puneet Gupta, Director of S&P Global Mobility’s India and ASEAN Automotive Market, “Powertrain pluralism is the new buzzword in mobility.” This phrase sums up the increasing recognition of several engine options meant to decarbonize the Indian market. Gupta stresses that EVs are still a vital component of the answer for the future, even though the projected adjustment shows room for hybrids.
He points out that India is pursuing electrification in a way that is specific to it. Native producers such as Mahindra and Tata Motors are probably going to concentrate on a single electrification route instead of taking a ‘jack of all trades, master of none’ stance. This strategic focus is necessary to meet the needs of India’s diverse client base, which includes both luxury and affordable car options.
In a scenario where several major automobile regions are experiencing decline, India stands out as a developing market. According to Gupta, “The market for different technologies will only grow, and businesses need to shift away from conventional fuels at the right time.” Manufacturers are likely to gradually move away from compressed natural gas (CNG) and diesel as viable fuel sources as consumer demand changes.
Although CNG has become popular as a transitional fuel, especially for little cars. But by 2028, the emergence of effective hybrid technologies might persuade people to give up on CNG completely. According to Gupta, plug-in hybrid electric cars (PHEVs), particularly those that are the outcomes of collaborations with Chinese OEMs, are becoming more popular and may even surpass the success that PHEVs have found in China, where they have grown rapidly.
The market for conventional fuels like gasoline and diesel is expected to diminish as alternative powertrains become more widely used. This change is being driven mostly by battery-electric vehicles (BEVs), especially in the two- and three-wheeler segments, which is having a major effect on the need for petroleum.
S&P Global Commodity Insights’ Senior Vice President and Chief Energy Strategist, Atul Arya, highlights the differences in EV adoption rates amongst markets. According to Arya, “China is leading the charge, with over 60% of new car sales being EVs last month.” The U.S. market, on the other hand, trails behind by less than 10%.
“In the Indian context, there are two main markets: the easily electrified two-wheeler market and the mass transportation sector, which includes buses. Cost is a major factor in other markets, thus it is fascinating that hybrids are becoming more popular since they provide the advantages of all. The infrastructure is not a concern, but they do offer the advantage of efficiency. I do not think it is shocking that India is experiencing difficulties on par with the US, a fairly developed market,” he says.
