Green mobility in India: A multimodal path forward

Government policies are pivotal in accelerating EV adoption. The Faster Adoption and Manufacturing of Electric Vehicles in India scheme, now in its second phase with a budget of 100 billion rupees, provides subsidies for EV purchases and infrastructure, though its benefits have primarily been realized by the two- and three-wheeler industries.

The new Indian EV manufacturing policy, approved in 2024, aims to establish the country as a global EV manufacturing hub. It mandates a minimum investment of 41.5 billion rupees, a three-year production timeline and 50% domestic value addition within five years. The policy also permits limited imports at a reduced customs duty, but car manufacturers are not yet able to fully leverage its advantages.

Further bolstering the sector, the PM Electric Drive Revolution in Innovative Vehicle Enhancement scheme, with an outlay of 109 billion rupees, allocates 20 billion rupees to develop 72,000 charging stations. Production Linked Incentive schemes for advanced chemistry cell battery storage (181 billion rupees) and the automotive sector (259 billion rupees) are in place to strengthen domestic manufacturing. Additional supportive policies include a goods and services tax reduction to 5% and road tax waivers. A stable and long-term policy framework remains essential for continued growth.

The lifeline: Indian EV charging infrastructure

Expanding Indian EV charging infrastructure is the bedrock for adoption. According to the Bureau of Energy Efficiency, public EV charging stations grew from 1,800 in 2022 to 25,202 in December 2024. Despite this, India has one public charging station for every 135 EVs, falling short of the global benchmark — one public charging station for every six to 20 EVs — and fueling range anxiety.

Addressing this concern involves not only infrastructure but also vehicle capability. Real-world range performance is becoming a decisive factor for Indian EV buyers. According to S&P Global Mobility, German brands such as Mercedes-Benz and Audi are leaders in rated range, while domestic manufacturers such as Tata Motors and Mahindra Auto are rapidly improving, pushing range boundaries for mass-market appeal. Other strong performers praised for their range capabilities include Volvo, Jaguar and Land Rover.

Electric mobility in India appears highly promising. Advancements in battery technologies are expected to enable more EVs to surpass 800 km of range on a single charge. Breakthroughs such as solid-state batteries and advanced energy management systems are set to deliver higher energy density, faster charging capabilities and more efficient system integration.

India needs a diversified portfolio, and its approach to green mobility extends beyond EVs.

A sensible middle ground: Is the future hybrid?

Hybrid vehicles in India are rapidly becoming the fastest-growing transitional solution in the passenger vehicle market and are projected to grow with a compound annual growth rate of over 18%. They offer up to 35% higher fuel efficiency, instant torque and lower emissions, providing efficiency similar to EVs. Hybrid vehicles also create less range anxiety, with over 40% of urban buyers considering them. Automakers such as Maruti Suzuki and Toyota are leaders in affordable hybrid technology, which for original equipment manufacturers is a low-risk electrification strategy utilizing existing internal combustion engine platforms. Despite their benefits, hybrid cars face a high goods and services tax rate of 28%, plus an additional cess (e.g., 15% for engines over 1,500 cc, totaling a 43% tax incidence). While some Indian states offer road tax waivers, strong policy support is crucial for overall segment growth.

Biofuels are vital for transport decarbonization, especially in areas where electrification faces challenges. Diesel will remain dominant for buses and heavy goods vehicles (60%-65% of demand) and is unlikely to be phased out before 2035.

India, the world's third-largest ethanol producer, targets 20% ethanol blending in gasoline by 2025–26, from about 12% today, and 5% biodiesel by 2030. For international flights, bio-jet fuel targets are 1% by 2027 and 2% by 2028. Feedstock diversification includes maize, surplus rice and agricultural residues.

Challenges include increasing flex-fuel vehicle adoption, monitoring costs and ensuring feedstock sustainability. India's 2023 launch of the Global Biofuels Alliance highlights its commitment to this solution.

The long game: Is hydrogen the future of sustainable transportation in India?

India targets 1,000 hydrogen trucks and buses by 2030. The National Green Hydrogen Mission, launched in 2023, aims to make the country a global green hydrogen hub. Its goal is to produce 5 million metric tons of green hydrogen annually by 2030, developing 60 GW-100 GW electrolyzer capacity, attracting 8 trillion rupees in investment and creating 600,000 jobs. The focus is on medium and heavy commercial vehicles due to hydrogen's energy density and fast refueling capabilities, which can help overcome battery limitations. Tata Motors and Ashok Leyland are developing hydrogen-powered vehicles while Reliance Industries, Bharat Petroleum and Hindustan Petroleum are building refuelling infrastructure. Policy support includes the 175 billion-rupee Strategic Interventions for Green Hydrogen Transition program for electrolyzer manufacturing and hydrogen production. India's abundant renewable energy resources provide a strong foundation for a hydrogen-fueled future.

India aims for green mobility with a localized supply chain, reducing reliance on imported EV components such as lithium-ion batteries. One challenge is that Indian suppliers may be unprepared for high EV demand and may have to rely on foreign suppliers, but international partnerships can also offer opportunities.

Battery sustainability and a circular economy

India prioritizes a circular economy for EV batteries due to their carbon footprint. The country’s Battery Waste Management Rules 2022 mandate extended producer responsibilities for recycling, setting targets of 70% by 2024–25, 80% by 2026 and 90% after 2026–27. Producers must also use increasing amounts of recycled content: 5% by 2027–28 and 20% by 2030–31. Industry collaborations are key, such as the Battery360 Alliance, exploring alternative chemistries such as lithium iron phosphate and sodium-ion batteries. 

Skill development, green job creation and partnerships

The transition to green mobility in India will boost employment, with the National Green Hydrogen Mission alone expecting to create over 600,000 jobs. Upskilling initiatives by state governments and bodies such as the Automotive Skills Development Council are preparing the workforce for clean vehicle technology, including hybrid vehicle servicing.

Based on the current landscape and outlook, the following strategic moves are crucial to accelerate the transition to green mobility in India:

• Foster long-term policy stability (beyond 2030) with ample lead time for major shifts, which is crucial for manufacturers and investors.
• Rapidly expand interoperable Indian EV charging infrastructure, especially in underserved areas, and strategic hydrogen refueling, integrated with grid modernization and renewable energy.
• Intensify efforts to localize the green mobility supply chain, focusing on batteries and advanced components by incentivizing domestic research and development and securing critical minerals.
• Promote a segment-specific multifuel approach: EVs for light-duty vehicles, hybrids as a bridge, biofuels for existing internal combustion engines and heavy diesel vehicles, and green hydrogen for long-haul and industrial transport.
• Invest in job creation through large-scale skill development and vocational training for the evolving green mobility ecosystem (manufacturing, maintenance and infrastructure).
• Integrate green mobility into urban planning: Mandate and incentivize EV charging in new and existing developments and prioritize public transport electrification with planned EV charging infrastructure.

The journey toward sustainable transportation in India combines electricity for light-duty vehicles, biofuels for existing fleets, hybrids for transition and long-term green hydrogen for heavy-duty applications. This shift — driven by policy, investment and private sector involvement — aims to decarbonize transport, boost energy security and develop domestic manufacturing, creating more liveable cities.