With the statement of Former Union Minister Nitin Gadkari stating that “I want to eliminate diesel and petrol vehicles from this country within 10 years,” the speculations have been higher in the automobile sector.
Status at present –
*ICE Vehicles– An internal combustion engine vehicle is an automobile powered by conventional, oil-derived resources such as petrol or diesel fuel.
The Indian automobile sector is expected to undergo a significant shift in fuel usage, with a major focus on electric vehicles (EVs) and green hydrogen:
Electric Vehicles (EVs): The Indian government has ambitious plans for EV adoption, targeting a 30% EV penetration by 2030 [investindia.gov.in]. This is driving investments in EV technology and manufacturing, with a wider range of EVs becoming available across segments, from affordable hatchbacks to luxury sedans. Mr. Gadkari called upon the automobile industry to reduce cost of the EVs so that the sale number goes up and as the sale goes up the industry would also gain. He stressed that the quality of the vehicles should also be maintained. Shri Gadkari felt that with higher output the automobile industry would be able to cater to growing market. He also said that Indian manufacturers have the capability to make efficient EVs that can not only create more jobs but also provide opportunities for exports. “e-Mobility is going to be the future mode of transport with greater efficiency and less impact on the environment. Import of crude oil and air pollution are two major concerns for the country. We need to have an integrated approach for EVs,” he added.
He further urged FICCI and other stakeholders to come up with an integrated approach towards developing the EV sector in India. Referring to the NITI Aayog report, Shri Gadkari said that India needs 50 GWs by 2025.
Green Hydrogen: Hydrogen fuel cell electric vehicles are emerging as another alternative. The government’s push for green hydrogen production makes this option even more attractive due to its sustainability. The Government of India has come out with guidelines for undertaking pilot projects for using Green Hydrogen in the transport sector. The “Scheme Guidelines for implementation of Pilot Projects for use of Green Hydrogen in the Transport Sector”, have been issued by the Ministry of New & Renewable Energy (MNRE) on February 14, 2024, under the National Hydrogen Mission.
With the falling costs of renewable energy and electrolyzers, it is expected that vehicles based on green hydrogen can become cost-competitive over the next few years. Future economies of scale and rapid technological advancements in the field of vehicles powered by hydrogen are likely to further improve the viability of transport based on green hydrogen.
Considering this, under the National Green Hydrogen Mission, along with other initiatives, the MNRE will implement pilot projects for replacing fossil fuels in the transport sector with Green Hydrogen and its derivatives. These pilot projects will be implemented through the Ministry of Road Transport and Highways and the Scheme Implementing Agencies (SIAs) nominated under this Scheme.
The scheme will support development of technologies for use of Green Hydrogen as a fuel in Buses, Trucks and 4-wheelers, based on fuel cell-based propulsion technology / internal combustion engine-based propulsion technology. The other thrust area for the scheme is to support development of infrastructure such as hydrogen refuelling stations.
The scheme will also seek to support any other innovative use of hydrogen for reducing carbon emissions in the transport sector, such as blending of methanol / ethanol based on green hydrogen and other synthetic fuels derived from green hydrogen in automobile fuels.
The Scheme will be implemented with a total budgetary outlay of Rs. 496 Crores till the financial year 2025-26.
The use of Green Hydrogen in the transport sector, via the proposed pilot projects, will lead to development of necessary infrastructure including refuelling facilities and distribution infrastructure, resulting in establishment of a Green Hydrogen ecosystem in the transport sector. With the expected reduction in the Green Hydrogen production cost over the years, the utilization in the transport sector is expected to increase.
Here’s a breakdown of the expected changes:
EV Dominance: Experts predict a significant rise in EV sales. EVs are expected to become the leading segment, especially in two-wheelers and smaller cars, due to government incentives, falling battery prices, and increasing consumer interest in eco-friendly options.
- Focus on Biofuels: Blending ethanol with petrol is another strategy. The government aims for 20% ethanol blending by 2023-24 and even envisions 100% ethanol-powered vehicles in the future. This can reduce dependence on fossil fuels.
- Gradual Shift: The transition won’t happen overnight. Traditional gasoline and diesel vehicles will likely remain in use for some time, especially for long-distance travel where infrastructure for EVs and hydrogen is still developing.
Overall, the Indian automobile industry is moving towards a cleaner and sustainable future. EVs and green hydrogen are expected to play a major role in this transformation.