The Indian automotive sector will adopt a multi-fuel approach in its transition to sustainable mobility rather than relying entirely on electrification, according to industry representatives at the Future Powertrain Conclave organised by a local automotive publication and the Government of Tamil Nadu.

Leaders from Tata Motors, Mahindra & Mahindra, Ashok Leyland, Toyota Kirloskar Motor, Stellantis India, and Montra Electric stated that India's transition towards sustainability cannot be solely dependent on electric vehicles (EVs).

Instead, they highlighted a multi-fuel strategy that includes EVs, hybrids, biofuels, hydrogen, compressed natural gas (CNG), and flex-fuel technologies to align with consumer demand, infrastructure constraints, and economic factors.

Approaches to sustainable mobility

Vikram Gulati, Country Head and Executive Vice President - Corporate Affairs and Governance, Toyota Kirloskar Motor, stated:

"The transition to sustainable technologies will follow multiple pathways, with the mix varying based on market conditions and consumer acceptance."

Shailesh Hazela, Managing Director and Chief Executive Officer of Stellantis India, noted that internal combustion engine (ICE) vehicles will continue to be part of India's automotive sector for the foreseeable future, alongside flex-fuel, hybrid, and electric powertrains.

Ganesh Mani, President and Chief Operating Officer of Ashok Leyland, expressed similar views regarding the commercial vehicle segment. While two-wheelers and three-wheelers are transitioning towards electric powertrains, larger freight vehicles face challenges related to battery weight, range limitations, and charging infrastructure.

Instead of full electrification, the commercial vehicle sector may see a gradual shift towards hydrogen fuel technology, particularly for trucks and buses that require high energy output and long-range capability.

"Hydrogen fuel cells and LNG-powered vehicles require policy and infrastructure support. Diesel is expected to remain dominant until at least 2035, but hydrogen could become more viable if cost and infrastructure challenges are addressed," Mani stated.

Policy and infrastructure considerations

The panel noted that policy incentives and charging and fuelling infrastructure will influence the pace of transition.

Panellists emphasised that taxation and policy reforms will be important in shaping India's powertrain mix. One key recommendation was to link vehicle taxation to carbon emissions and fuel efficiency rather than applying a uniform Goods and Services Tax (GST) across all powertrains.

"Taxation should be based on environmental impact. If a vehicle is fuel-efficient and emits less carbon, it should be taxed at a lower rate. This approach has been implemented in Europe and Thailand," said Gulati.

"Policy measures should not focus solely on EVs but also include hybrids, flex-fuel vehicles, and hydrogen-powered mobility," further added Mani.

Consumer adoption and industry challenges

Beyond government policies, consumer preferences and affordability will influence the adoption of alternative powertrains.

For commercial vehicle buyers, total cost of ownership (TCO) is a key consideration. According to Mani, fleet operators prioritise cost-effectiveness and financing options when evaluating new vehicle technologies.

"Brand trust remains a factor for commercial vehicle buyers. Alongside technological changes, it is necessary to communicate the cost benefits of various powertrains to customers," Mani stated.