Alternative fuels to take center stage in the India's mobility sector

Coelho highlighted that Brazil started because of economic reasons but today it is the need to decarbonize the environment

During the 63rd Annual Convention of the Society of Indian Automobile Manufacturers (Siam), the Indian automotive industry and the government reached a mutual agreement to collaborate closely in their efforts to embrace alternative fuels. They aim to achieve carbon neutrality well ahead of the 2070 deadline.

Minister of Road Transport and Highways Nitin Gadkari urged the automotive industry to shift away from environmentally harmful fuels like diesel and petrol in favour of alternative, eco-friendly options. He emphasised the need for the industry to rapidly expand its utilisation of green technologies, including biofuels, electric vehicles (EVs), and hydrogen-powered vehicles.

Expressing gratitude for the industry’s efforts in decreasing the use of diesel in passenger vehicles from 53 per cent in 2014 to 18 per cent in 2023, he encouraged the industry to continue reducing this figure.

 

He cautioned that if the industry doesn’t make further progress, the government may implement stricter policies.

“Bring down the diesel vehicle’s share; otherwise, we will have to impose an additional 10 per cent pollution tax,” Gadkari said.

Vinod Aggarwal, president of Siam and managing director (MD) and chief executive officer of Volvo Eicher Commercial Vehicles, underscored the imperative need for sustainable mobility to secure a better tomorrow.

He highlighted the six pillars of sustainability on which the automotive industry and Siam are presently focusing in close association with the government, namely Jaivik Pahal (biofuel), Vidyutikaran (electrification), Gas Gatisheelta (gaseous fuels), Harit Hydrogen (green hydrogen), Chakriyata (recycling), and finally Surakshit Safar (safe journey). He also mentioned the progress undertaken by the industry to increase its localisation content.

Alternative fuels are often low-cost, produce less waste and particulate matter, carbon monoxide, unburned hydrocarbons, and sulphur dioxide.

Shailesh Chandra, vice-president of Siam and MD of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said, “Siam has embarked on a proactive journey, with a strong focus on biofuels and a future centred around green energies.”

Gadkari urged the automotive industry to increase the production of EVs. He said that EV sales in India are expected to reach 10 million by 2030. Gadkari also urged the industry to move towards green hydrogen. He added that the government is working on generating thermal, hydro, wind, nuclear, and geothermal energy to meet the growing demand for electricity from EVs.

Emphasising that India relies on imports for 89 per cent of its fossil fuels, the minister underscored that transitioning away from fossil fuels is not merely an environmental imperative but also a significant economic one.

India’s monthly import bill for oil is around $10 billion.

“Flex-fuels are the solution for the future. Biofuel is cheaper and generates jobs, making it a good option for developing countries,” Suani Teixeira Coelho, professor at the Institute of Energy and Environment and Coordinator of the Research Group of Bioenergy at the University of Sao Paulo, said.

Coelho highlighted that Brazil started its transition for economic reasons, but today, it is a necessity to decarbonise the environment.

Minister of Heavy Industries Mahendra Nath Pandey highlighted that the government will help the industry in achieving its targets. “We have extended the production-linked incentive scheme by another year to enable the automotive industry to reap the benefits of the incentives being provided for manufacturing advanced automotive technologies,” Pandey said.

The automotive industry in India has grown from being the seventh largest in the world in 2014 to the third largest in 2023. The industry’s revenue has also increased from Rs 4.5 trillion in 2014 to Rs 12.5 trillion in 2023.

Secretary of the Ministry of Heavy Industries Kamran Rizvi said that the automotive industry will achieve the net-zero target years ahead of the 2070 deadline.

“While incentives are being cut around the globe, in India, we are providing incentives. This is an opportunity for the industry to become a global leader,” Rizvi said.

Secretary of the Ministry of Road Transport and Highways Anurag Jain said that retrofitting internal combustion engine buses could play a crucial role in achieving these targets.