Indian Auto Industry Driving Towards a Greener Future

The automotive industry around the world is right now going through a green revolution. India is no different, as the government is making concerted efforts to guide the auto industry toward a green and sustainable future. Steps are being taken to reduce the carbon footprint by introducing stricter emission laws and subsidizing greener alternative fuels and sustainable practices. The private sector will have to play a key role if the goal of a sustainable future is to be achieved and contribute to the global effort to combat climate change.

Honourable Prime Minister Mr. Narendra Modi has urged the auto industry to be innovative and shift towards greener energy.

“It is a need of the hour that the automobile industry’s innovation for greener alternatives attains a new momentum, to ensure the protection and conservation of the environment, as well as help in making India self-reliant.” – PM Modi.

India sees cleaner renewable energy for the auto industry as a way to decrease the country’s reliance on foreign oil. One of these clean fuel alternatives is electricity. Hence electric vehicles have become a priority. The government is aiming for 30% of total car sales to be electric by the year 2030. It is a tall task as India is the fourth largest vehicle manufacturer in the world, and transformation to electric vehicles will require a strong and united effort.

One of the major obstacles to the wide adoption of electric vehicles is the high cost of this new technology. Electric cars have been dearer compared to their ICE (Internal Combustion Engine) counterparts. Lithium-ion batteries needed to run these EVs are expensive, but as technology improves and the demand increases, the manufacturing price will go down. The government is also providing subsidies for the manufacturers and end consumers to encourage them to shift to this new technology. The 2023 budget has made a blanket custom duty exemption on importing capital goods and machinery used to produce Lithium-ion batteries. Union Minister Nitin Gadkari has recently stated that electric vehicles will cost the same as petrol-run cars by the end of the year 2023. Finance Minister Nirmala Sitharaman has also announced additional ₹19,700 crores towards the production of green hydrogen to lower carbon intensity and reduce the use of non-renewable energy.

Local automotive companies like Tata, OLA, TVS, and Mahindra & Mahindra have already introduced electric vehicles in the market, while a major car manufacturer Maruti-Suzuki has planned to launch multiple EV models in the coming years. Tata has already sold more than 35000 Nexon EVs and developed a strong foothold in the EV market. International automotive companies like Hyundai, Kia, MG (Morris Garages), BMW, Mercedes, Audi, and BYD (Build Your Dreams) have also introduced their own electric cars in the country. Another requirement for the wide adoption of EVs is the charging infrastructure, which is still in its infancy in the country. The government and the private sector must work together to build a comprehensive network of chargers around the country to facilitate the adoption. Companies like Maruti-Suzuki, Toyota, and Honda have also introduced ICE-Electric Hybrid cars which are comparatively more efficient than regular ICE vehicles.

Apart from EVs, the government is also preparing to adopt other fuel options like hydrogen fuel cells and biofuel. According to the vehicle emission norms of 2023, all newly built ICEs should be capable of running 100% on flex fuels like ethanol, which is a greener alternative to petrol. Companies like TVS motors and Bajaj Auto have already started producing such engines for their two and three-wheelers. Tata Motors has collaborated with the technology company Cummins to develop hydrogen fuel cell EVs and Hydrogen ICEs. Reliance Industries Limited (RIL), in partnership with Ashok Leyland, unveiled India’s first hydrogen-powered internal combustion engine (H2-ICE) for heavy-duty vehicles during India energy week in the beginning of February.

India is at a crucial juncture where it must balance economic growth with environmental sustainability. So taking a proactive approach to transforming the auto industry into a greener and more sustainable one is the key. Wide-scale adoption of EVs and other greener alternative fuels like hydrogen and biofuels will lead the industry to a brighter future.