Electric vehicles and green mobility are the new buzzwords in the auto industry as India shifts its gears towards achieving its sustainability goals. At the 26th session of the United Nations Framework Convention on Climate Change (COP 26) in November, 2021, it announced its target to achieve net zero by 2070. India's roadmap for a greener future rests on key changes towards low-carbon development paths including the development of an integrated, efficient and inclusive transport system, as well as decarbonising the transport sector by promoting and improving sustainable options, such as electric cars. In December 2022, India became the 3rd largest automobile market, surpassing Japan and Germany in terms of sales, with the sector contributing 7.1% to the national GDP. The domestic electric vehicles (EV) market is expected to grow at a compound annual growth rate (CAGR) of 49% between 2022 and 2030 and is expected to hit one crore units annual sales by 2030.

The Indian automakers are increasingly embracing sustainable practices to reduce carbon footprint. At the recently concluded Society of Indian Automobile Manufacturers (SIAM) Annual Convocation, the Prime Minister, Shri Narendra Modi, noted Indian Auto Industry’s efforts towards decarbonisation through the introduction of vehicles with a range of powertrain technologies.

Innovative advancements and endeavours by Indian automakers:

  1. TATA Motors – Showcased 14 vehicles and concepts at the Auto Expo 2023 including India’s first hydrogen ICE powered concept truck, India’s first hydrogen fuel cell powered tractor concept and India’s first hydrogen fuel cell bus for commercial application to enable customers to make a seamless transition to clean and commercially viable mobility solution. Tata motors is pioneering the Indian 4-wheeler passenger market with over 90% market share and launching affordable EV in the $10,000 bracket accounting for approximately 40% of their total EV sales. Tata Motors is on a mission to make the future of green mobility a reality for India to help achieve its net zero target. The company is spearheading the transition to sustainable mobility because smart customers aspire to have access to vehicles that deliver climate change neutrality and offer best-in-class features and safety.

  2. Mahindra and Mahindra – The Tool & Die (T&D) plant at Nashik, Maharashtra is leading the way in technological advancements and the implementation of world-class facilities in the sector with the implementation of ACT (Advanced Cold Test) technology, which is a green solution that eliminates the need for diesel burning during testing to check the performance of engines without firing it. When the engines are ‘cold’, or not running, so no gasoline or special ventilation are required, sensors track key parameters like torque, crankshaft angle, and pressures to check if everything works correctly under conditions similar to real-world operation.

  3. Ola Electric – Set up the world’s largest EV facility at a single location as well as India’s biggest Gigafactory, in Krishnagiri, Tamil Nadu. The Gigafactory will begin operations with a capacity of 5 GWh in the beginning of 2024 and ramp it up to 100 GWh at full capacity, becoming the biggest lithium-ion cell factory in India and the world’s largest cell manufacturing unit at full capacity. Tailored to meet diverse consumer preferences, Ola Electric is set to drive India's electrification by expanding its 2-wheeler manufacturing, launching electric motorcycles, and eventually entering the electric car market for accelerated growth.

  4. Hero MotoCorp – Partnered with HPCL and BPCL to set up 2W EV charging infrastructure across fuel stations throughout India. This partnership is designed to enhance convenience for electric vehicle users by making charging facilities more readily available. Hero has expanded its presence in the Electric Vehicle (EV) market by introducing the Vida V1 electric scooter in India, offering consumers an additional choice in the EV segment. 

Government regulations such as CAFE - Corporate Average Fuel Efficiency – are pushing manufacturers to not only opt for more models in the green segment but also to delve into alternative fuel options beyond EVs such as hybrid, CNG, flexi-fuels. Leading two-wheeler manufacturers including Hero MotoCorp, Bajaj Auto, TVS Motors, and Eicher Motors are planning to introduce at least one flex-fuel model each by 2024. Similarly, automobile giants like Maruti Suzuki are developing vehicles powered by biogas, aiming for carbon neutrality. As part of its commitment to reduce carbon emissions, the Indian government has implemented various measures to support the transition to sustainable and green mobility. These initiatives include imposing stricter regulations on conventional single-fuel vehicles and offering incentives to encourage the adoption of alternative, eco-friendly vehicles and fuels.

Government measures and initiatives that are driving sustainable mobility in India:

  1. Leapfrogging from BS-IV to BS-VI norms for fuel and vehicles from 1st April, 2020 for all major on-road vehicle categories, including light and heavy vehicles, as well as two and three-wheeled vehicles. In simple terms, India's Bharat Stage VI (BS) emission standard involves stricter limits on particulate matter (PM) for vehicles with gasoline direct injection and diesel engines. This is expected to result in widespread use of diesel particulate filters (DPF) to control PM emissions in new diesel vehicles.

  2. Sustainable Alternative Towards Affordable Transportation (SATAT) has been launched as an initiative to set up Compressed Bio-Gas (CBG) production plant and make CBG available in the market for use in automotive fuels.

  3. The National Electric Mobility Mission Plan (NEMMP) 2020 is a national initiative that outlines a vision and roadmap for the accelerated adoption and manufacturing of electric vehicles in India. This strategic plan is formulated to enhance national fuel security, provide affordable and environmentally friendly transportation, and position the Indian automotive industry as a global manufacturing leader. As part of the NEMMP, Department of Heavy Industries formulated the scheme Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme. The Phase II of the Scheme with a budget of INR 10,000 Crore over a three-year period starting from April 1, 2019, allocates approximately 86% of its total funds to stimulate the demand for EVs in the country. This phase mainly focuses on supporting electrification of public & shared transportation by supporting 7,000 e-Buses, 5 lakh e-3 Wheelers, 55,000 e-4 Wheeler Passenger Cars (including Strong Hybrid), and 10 lakh e-2 Wheelers. INR 800 Crore has been sanctioned as capital subsidy to the three Oil Marketing Companies (OMCs) of the Ministry of Petroleum and Natural Gas (MoPNG) for establishment of 7,432 electric vehicle public charging stations

  4. The Production Linked Incentive (PLI) Scheme for Automobile and Auto components, with a budget of INR 25,938 Crore spanning five years from FY 2022-23 to FY 2026-27, aims to enhance the manufacturing of Advanced Automotive Technology (AAT) products. This initiative is expected to encourage extensive localization for AAT products and foster the development of both domestic and global supply chains. The scheme primarily targets Zero Emission Vehicles (ZEVs), including Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles

  5. The Production Linked Incentive scheme under the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, with a budget of INR 18,100 Cr, aims to fortify the Electric Mobility and Battery Storage ecosystem in the country. This initiative seeks to boost India's manufacturing capabilities in Advanced Chemistry Cell (ACC) by establishing Giga-scale ACC and battery manufacturing facilities, emphasizing substantial domestic value addition. Beneficiary firms are required to achieve a minimum domestic value addition of 25%, progressively increasing it to 60% within five years.


The journey towards sustainable practices in the automotive industry marks a pivotal shift toward a greener and more environmentally conscious future in India. India's 2047 vision hinges on achieving self-reliance, which includes liberating itself from reliance on perishable resources and embracing sustainable modes of transportation. By 2047, India has the potential to attain energy independence through clean technology. The shift to electric vehicles could lead to a remarkable 90% reduction in crude oil imports, saving around $240 Bn as well as creating $2.5 Tr in net consumer savings. As the nation strives to reduce its carbon footprint, government schemes play a crucial role in fostering innovation and incentivizing eco-friendly initiatives, for both companies and consumers. With the automotive sector embracing the challenge, leading companies are actively engaged in implementing innovative technologies and manufacturing processes that align with these sustainable goals. As we witness the collective efforts of the government and industry, it becomes evident that the path to a carbon-neutral automotive landscape is not only imperative but also achievable. This concerted commitment to sustainability is not just a responsibility but a powerful testament to the automotive industry's dedication to a cleaner, greener, and more sustainable future.

Which company has unveiled India’s first hydrogen ICE powered concept truck?



We are India's national investment facilitation agency.


For further queries on this subject, please get in touch with us @Invest India.
Raise your query