TL;DR
Indian automakers are targeting a major shift, aiming for clean fuel vehicles (EVs, hybrids, CNG) to constitute over 50% of total sales by 2030, driven by new emission norms and strategic investments.
The Indian automobile market is on the verge of a significant transformation, with car manufacturers collectively targeting over 50% of total sales to comprise clean fuel vehicles by 2030. This ambitious goal includes electric (EVs), hybrid, and Compressed Natural Gas (CNG) vehicles, necessitating a tenfold increase in their production within just five years. The push is primarily driven by tightening Corporate Average Fuel Efficiency (CAFE 3) norms, set to take effect from April 2027, which mandate a substantial reduction in average carbon emissions across manufacturer fleets.
Currently, clean fuel options represent a small fraction of the market, with EVs accounting for approximately 3% and hybrids 2% of passenger vehicle sales. CNG models have shown stronger uptake at 19%. Maruti Suzuki, India's largest carmaker, has outlined a multi-pathway strategy, aiming for a powertrain mix of 35% CNG, 25% hybrids, and 15% EVs by 2030. Hyundai projects 53% of its sales from clean fuel sources by March 2030, planning to introduce eight hybrid models, three new CNG vehicles, and three EVs.
Tata Motors, a leader in electric passenger vehicles, has revised its EV target to 30% by 2030, with CNG vehicles expected to contribute 25% to its portfolio. Mahindra is also heavily investing in electric mobility, planning seven new battery electric vehicles by 2030 and committing Rs 12,000 crore to expand its EV capacity. These strategic shifts underscore the industry's commitment to meeting stringent environmental regulations and evolving consumer preferences for sustainable and cost-efficient mobility solutions.