India Embraces Multi-Fuel Strategy to Accelerate EV Adoption
After the sobering news of rapid depreciation in electric vehicles globally, India’s mobility story takes a more optimistic turn. A recent report by the India Energy Storage Alliance (IESA) shows that India is speeding up the shift to sustainable transport by adopting a multi-fuel strategy that goes beyond just battery electric vehicles.
The report highlights that India is deploying a combination of battery-electric vehicles (BEVs), hybrids, compressed natural gas (CNG), flex-fuel, and hydrogen-powered vehicles to meet the country’s diverse mobility needs. The idea is to provide multiple pathways rather than rely on a single technology, which helps in sectors where infrastructure or scale for one technology may lag. For example, while EVs are rapidly gaining ground in two- and three-wheel vehicles, CNG and hybrid options remain strong in urban fleets and regions with less charging infrastructure.
State governments are playing a key role in this transition. States like Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu are contributing over half of the country’s EV adoption. These states are enhancing charging infrastructure, supporting local manufacturing, and promoting policy frameworks tailored to each region’s strengths. Meanwhile, upcoming regulations under the Corporate Average Fuel Efficiency (CAFÉ 3) norms from April 2027 will bring incentives for zero and low-emission vehicles, further reinforcing the multi-fuel momentum.
For tyre makers, mobility suppliers, and aftermarket players in India and Asia, this broadening of vehicle technologies means the product and service landscape will change. Tyre specifications must align with electric vehicle requirements (such as low-rolling-resistance and heavier vehicle weight), but also support alternative fuel and hybrid models. The shift suggests a broader ecosystem focus, where tyres are an integral part of the fuel-technology transition, not just a component of vehicle performance.
Editor’s View
Given the global concern over EV resale values and longevity, India’s multi-fuel strategy offers a pragmatic hedge. For tyre manufacturers and dealers, this means they must prepare for disruption not just from electrification but from a wider spread of vehicle types and drive-trains. Whether it’s a BEV, a hybrid, a CNG-fleet unit, or a hydrogen-powered bus, each demands different tyre characteristics, maintenance regimes, and aftermarket services. Tyre industry stakeholders who anticipate this diverse future, rather than betting solely on electric, may gain an edge. They should align product development, inventory planning, and service networks accordingly to ride the wave of India’s broad-based mobility transition.
