WionDrive News Desk 
Deloitte India has released a comprehensive report titled “Fuels of the future: Exploring alternative fuel options for transport,” which examines India’s accelerating transition towards sustainable energy solutions in the transportation sector. The report highlights several key points and projections:
Electric Vehicles (EVs):
The report suggests that EVs are poised to become a strong competitor to alternative fuels, particularly in the two-to-four-wheeler segments, over the next two decades. This shift is crucial as India works towards its interim goal of reducing greenhouse gas emissions by 2030. The government has allocated INR 2671.33 crore for the FAME III scheme in the recent Interim budget, with more details expected in the main budget in July 2024.
Despite supply chain disruptions caused by the COVID-19 pandemic, global EV sales surpassed 10 million units in 2022, with battery electric vehicles (BEVs) accounting for nearly 70 per cent of these sales. Deloitte projects that annual EV sales could reach 31.1 million units by 2030.
The report anticipates that EV adoption will maintain strong momentum until 2040-2045, driven by supportive government policies and decreasing production costs. However, it predicts a decline in EV adoption post-2045 as greener fuel options like Green Hydrogen become more prevalent and technological advancements improve fuel efficiency.
Biofuels and Green Hydrogen (GH):
While currently in their early stages, the domestic production of biofuels and Green Hydrogen is expected to increase significantly. The report predicts a notable rise in biofuel adoption from 2025 onward, with government support and technological advancements playing crucial roles in this transition.
Deloitte’s analysis suggests that Green Hydrogen, especially as a combustible fuel, will eventually surpass EVs in the long run.
Natural Gas (NG) and Liquefied Petroleum Gas (LPG):
The adoption of natural gas and LPG is expected to increase in the short term, peaking around 2040. However, the report anticipates a decline within a decade due to competition from less import-dependent alternatives with better sustainability profiles.
The report emphasises that India is at a critical juncture in terms of energy security and sustainable development, necessitating a shift towards cleaner energy sources. It highlights the government’s push for EV adoption and anticipates significant initiatives to strengthen India’s overall EV ecosystem, including enhancing domestic R&D, expanding component manufacturing, and upskilling the workforce.
Rajeev Singh, Partner and Consumer Industry Leader at Deloitte Asia Pacific, notes that hybrid vehicles have played a crucial role in this green transition. He also mentions the potential for government initiatives to promote Green Hydrogen adoption, leveraging India’s abundant renewable energy resources to reduce fuel import costs.
The report serves as a guide for industry leaders in integrating alternative fuels across various vehicle segments. It emphasises the need for OEMs and component manufacturers to remain agile, recognising that each segment has unique requirements.
As India approaches its centenary of independence, the report suggests that Green Hydrogen will play a pivotal role in shaping the future of mobility. It underscores the importance of strategic, coordinated efforts to achieve a greener, sustainable future for India’s transportation sector, which is crucial as the country aims to become a multimodal logistics hub.
