ROAD TO CLEANER FUELS

WHILE EVs AND HYBRIDS ARE EMERGING AS RELIABLE ALTERNATIVES, FOSSIL FUEL-BASED VEHICLES ARE EXPECTED TO DOMINATE INDIAN ROADS IN THE NEAR FUTURE

- ASTHA ORIEL

IN HIS BOOK, The Third Industrial Revolution, economist Jeremy Rifkin says that every major economic shift is driven by changes in energy use and transportation. The global automotive industry is undergoing such a transformation, from fossil fuels to sustainable alternatives like electric, CNG and biofuel. In India, where the transport sector accounts for 10% of greenhouse gas emissions, the government is targeting net-zero emissions by 2070. The world’s third-largest auto market is expected to add 10 million vehicles by 2030.

Automakers are adopting a multi-powertrain approach—integrating EVs, CNG, hybrids and biofuels—to meet their sustainability goals. “These are a scalable pathway to reduce the carbon footprint. Their impact is amplified when supported by green manufacturing, sustainable supply chains and end-of-life recycling policies,” says Saket Mehra, Partner and Auto & EV Industry Leader at Grant Thornton Bharat.

EVs: CHARGING AHEAD

In CY2024, global EV sales surpassed 17 million units, pushing EVs’ share in the global car market above 20% for the first time, according to the International Energy Agency (IEA). The agency projects that one in four cars sold in 2025 will be electric, rising to over two in five by 2030. “Countries like China, the US, and EU members are investing heavily in EV infrastructure and battery innovation,” says Grant Thornton’s Mehra. EV adoption in passenger vehicles in India is 2-3%. But 2024 saw a 27% rise in overall sales of EVs to a record 1,949,114 units, driven by two-wheelers (59%) and three-wheelers (35%).