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Auto Giants Explore Hybrid Strategy as EVs Hit Speed Bumps

Slower-than-expected EV adoption, tight CAFE norms and ever-present efficiency demands are giving hybrids a second wind in India, and more than a dozen hybrid models are slated for launch by 2030.

By Ketan Thakkar & Hormazd Sorabjee

09 Jul 2025

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Auto Giants Explore Hybrid Strategy as EVs Hit Speed Bumps

India’s electric vehicle (EV) market is gaining traction, with a 4 percent penetration rate as of May 2025. However, the road to achieving 30 percent EV adoption by 2030 remains complex, with challenges surrounding affordability, charging infrastructure and consumer readiness. To bridge this gap, all major carmakers – except Tata Motors and Stellantis – are investing in hybrid technologies.

Integrating internal combustion engines (ICE) with electric motors, strong hybrids deliver about 50 percent better fuel efficiency and 25-35 percent lower emissions than traditional ICE vehicles, without needing external charging. Corporate Average Fuel Economy (CAFE) norms compliance further incentivises hybrids, ...

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