Transport: Driving electrification & biofuels

Economic Opportunity

The automotive sector contributes 7% of GDP and 49% of manufacturing GDP. The Indian EV market is poised to create a $100+ billion opportunity by 2030.

Geopolitical & Climate Risk

Indian transport relies heavily on imported fuels to meet nearly 80% of its needs. As the country's fastest-growing emissions sector, transport emissions could reach 650 Mt by 2050 under current policies.

Policy Tailwinds

The government is driving a robust electrification push through demand-side and manufacturing incentives, including PM E-DRIVE, PM-eBus Sewa, and Production-Linked Incentives (PLI) for the automotive sector and advanced chemistry cells. In parallel, an alternative fuels push is being mandated via ethanol and SAF blending mandates, alongside a Carbon Credit Trading Scheme (CCTS) methodology currently under development.

Customers

• Fleet operators and third party logistics
• State Transport Undertakings
• Individual 2W and 3W owners
• Battery manufacturers and recyclers
• Airlines and Shipping companies

Policy Makers & Regulators

• Ministry of Heavy Industries
• Ministry of Road Transport and Highways
• Ministry of Civil Aviation
• Bureau of Energy Efficiency (BEE)
• Central Pollution Control Board

Charging Infrastructure gap

India suffers from a severe charging infrastructure deficit, currently providing only one public charging station for every 235 EVs, far worse compared to global norms. This gap is especially critical along freight routes, where commercial-grade corridor charging for the hard-to-abate medium and heavy-duty truck segment remains practically non-existent.

Financing gap

Commercial EV adoption is constrained by conservative lending practices. In the absence of standardized residual value underwriting standards, lenders frequently price in worst-case battery degradation scenarios, increasing borrowing costs for fleet operators.

Mobility demand is set to grow exponentially, with car ownership tripling and air travel doubling by 2050. While 2W+3W electrification is already commercially self-sustaining due to favorable TCO, unlocking the next phase of decarbonization requires solving the remaining gaps in 4W EV financing, corridor charging infrastructure, the battery supply chain, and alternative fuels for aviation and long-haul freight. These challenges are solvable with a combination of innovation, targeted capital, and robust policy interventions. A combined strategy integrating electrification, fuel efficiency, and modal shifts can reduce India’s transport emissions by 71% by 2050.