As India’s car emission standards tighten, the use of cleaner fuels and electric vehicles (EVs) is increasing dramatically. About one-fifth of all passenger vehicle (PV) sales in India now have cleaner fuel or electric choices. BEVs, hybrid EVs, plug-in hybrids, and compressed natural gas (CNG) cars accounted for 19.23% of total PV sales in 2023-24, up from 9.29% in FY22.
In comparison, the proportion of gasoline and diesel internal combustion engines has decreased. While diesel has decreased from 18.83 percent in FY22 to 17.79 percent in FY24, petrol ICE vehicle share has decreased from 71.88 percent in FY22 to 62.98 percent in FY24. Hybrids’ share has doubled from FY23 (1.06%) to FY24 (2.15%). Auto original equipment manufacturers (OEMs) have focused on introducing CNG variants of popular models in response to consumer demand for vehicles with lower operating costs.
Maruti Suzuki India (MSIL), India’s largest passenger carmaker, has stated that by FY31, it expects 15-20% of cars sold to be EVs, another 25% to be hybrids, and the remainder to use ethanol, CNG, and compressed biogas (CBG).
BEE, India’s energy efficiency agency, has set severe targets for lowering car emissions and declared that battery electric vehicles will be essential to its clean mobility policy.