India’s EV Transition Fueled by Multi-Fuel Strategy, Finds IESA e-Mobility Report

Alongside e-mobility, other alternative fuel options such as CNG, hybrid, flex-fuel, and hydrogen-powered vehicles are gaining momentum.

24 Oct 2025 | 3555 Views | By Arunima Pal

India’s transition toward sustainable mobility is being shaped by a multi-fuel approach that combines electric, hybrid, flex-fuel, CNG, and hydrogen technologies, according to the latest Automotive Electrification in India Market Report released by the India Energy Storage Alliance (IESA) through its e-mobility initiative, the India Electric Mobility Council (IEMC).

The report highlights that as the world’s fourth-largest automobile producer, India has the scale and potential to emerge as a global leader across the automotive value chain. The sector stands at a pivotal point, with electrification and a growing focus on sustainability transforming not only powertrains but the entire automotive ecosystem. While petrol and diesel vehicles continue to dominate, the growing presence of sustainable mobility fuels—supported by enabling government policies and rising consumer awareness—reflects a broad consensus among automakers, policymakers, and consumers that environmentally responsible mobility is becoming a mainstream reality.

States are playing a key role in this shift by encouraging local EV manufacturing, investing in charging infrastructure, and developing dedicated mobility clusters and ecosystems. The report underscores the importance of coordination between central and state-level strategies to ensure smoother and faster adoption of electric vehicles.

According to the IESA report, India’s journey toward electrification is distinct due to its multi-fuel, multi-pathway approach. Alongside e-mobility, other alternative fuel options such as CNG, hybrid, flex-fuel, and hydrogen-powered vehicles are gaining momentum, each addressing specific regional and operational requirements.

The updated Corporate Average Fuel Efficiency (CAFE 3) draft norms, applicable from April 1, 2027, introduce a volume derogation factor for alternate fuels to encourage manufacturers to increase the production and sale of zero- and low-emission vehicles. The factors are as follows: Battery Electric Vehicle / Range Extender Hybrid Electric Vehicle – 3.0; Plug-in Hybrid Electric Vehicle / Strong Hybrid Electric Vehicle (Flex Fuel Ethanol) – 2.5; Strong Hybrid Electric Vehicle – 2.0; and Flex Fuel Ethanol – 1.5.

Debmalya Sen, President of IESA, stated that enabling policy plays a critical role in steering the shift toward environmentally friendly mobility and influencing consumer awareness and demand. He noted that while India’s overall adoption story is clear, regional trends remain uneven. States such as Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu dominate EV sales, accounting for over half of national volumes.

Sen observed that the transition to sustainable mobility is not uniform across the country. Some regions are advancing directly toward Zero Emission Vehicle (ZEV) adoption, supported by proactive EV policies, strong manufacturing ecosystems, and investments in charging infrastructure. Other states are following a phased path, relying more on alternative fuel vehicles to bridge the gap. This multi-adoption pattern reflects differences in market maturity, readiness, and local priorities.

As the market continues to evolve, the report emphasizes the need for balanced demand- and supply-side measures. It calls for maintaining technology neutrality to create a level playing field for all environmentally friendly technologies, ensuring that India’s decarbonization goals are met through the adoption of diverse sustainable mobility solutions.

The India Energy Storage Alliance (IESA) is an industry body dedicated to advancing energy storage, e-mobility, and green hydrogen adoption in India. It works closely with policymakers, industry stakeholders, and research institutions to promote market development through policy advocacy, business networking, and knowledge sharing.

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