Sustainable Mobility Takes Centre Stage In India's Automotive Sector: IESA

Published on 24 Oct, 2025, 9:51 AM IST
Updated on 24 Oct, 2025, 11:23 AM IST
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Regional governments are proactively facilitating the shift from traditional to alternative energy sources.

Green transportation solutions have transitioned from future aspirations to current-day developments, with equipment manufacturers, government bodies and buyers increasingly aligned on sustainable transport priorities, according to the India Energy Storage Alliance (IESA) latest industry analysis.

IESA's Automotive Electrification in India Market Report examines major electrification patterns transforming the nation's vehicle manufacturing landscape.

Ranking as the world's fourth-largest automobile manufacturer, India has both the capacity and opportunity to establish itself as a worldwide frontrunner throughout the automotive supply chain. The nation's vehicle sector has reached a critical transformation point, where electrification and renewed emphasis on eco-friendly transportation are revolutionising not just engine systems but the complete industry framework, the analysis indicates.

Traditional Fuels Face Competition

"While petrol and diesel power trains continue to dominate, the increasing prevalence of sustainable mobility fuels, driven by enabling policies and growing awareness, underscores a growing consensus among OEMs, governments, and consumers that environmentally sustainable mobility is no longer a distant goal, but a rapidly emerging reality," IESA was quoted as saying by news agency PTI.

Regional governments are proactively facilitating the shift from traditional to alternative energy sources by promoting domestic electric vehicle production, funding charging station networks, and establishing specialised transportation hubs and industrial clusters, the report notes.

These initiatives demonstrate the critical need for synchronised policy frameworks that harmonise national and regional strategies to accelerate electric vehicle market penetration.

India's Multi-Fuel Transition Strategy

The assessment underscores India's distinctive transition methodology, characterised by its multi-fuel and multi-pathway framework.

Although electric mobility receives substantial attention, considerable momentum is building in compressed natural gas (CNG), hybrid technology, flex-fuel systems, and hydrogen-based transportation, each suited to particular operational requirements, the report highlights.

Regional Disparities

IESA president Debmalya Sen was quoted as saying, "Enabling policy plays a crucial role in navigating the shift towards environmentally friendly mobility and influencing consumer awareness and demand. Interestingly, while the overall adoption story is clearly defined, regional trends at the state level are highly uneven. States like Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu dominate electric vehicle sales, accounting for over half of national volumes."

The movement toward sustainable transportation displays significant geographic variation nationwide, he observed.

Direct ZEV Adoption vs. Phased Approach

Certain regions are transitioning immediately to Zero Emission Vehicle (ZEV) implementation, powered by forward-thinking EV regulations, strong manufacturing foundations, and infrastructure capital allocation, he explained.

Meanwhile, other states are advancing through gradual implementation, depending more heavily on alternative fuel vehicles as transitional solutions.

This diversified adoption pattern mirrors the different stages of market development, preparedness levels, and regional policy priorities across states, Sen noted.

Balanced Policy Interventions

As market dynamics continue shifting, equilibrium between demand-generation and supply-enhancement measures becomes necessary, IESA recommended.

As India progresses toward its Net Zero targets, establishing equitable conditions for environmentally responsible technologies remains essential, maintaining technology-neutral principles while promoting all solutions that support the country's carbon reduction commitments.

AckoDriveTag IconTags
Electric vehicles India
EV adoption India
Sustainable mobility India
India automotive electrification
IESA report
Zero emission vehicles
Alternative fuel vehicles India

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