Formulating a Twin Pronged Strategy for Transport Decarbonization in India

India’s road transport sector accounts for nearly 12% of the country’s energy-related CO2 emissions, and is among its top three polluting sectors, trailing power and industry sectors. As a result, decarbonising this domain is essential which can’t be addressed by a single solution,  requiring a coordinated multi-dimensional strategy.

One of the dominant transformations in pursuance of this goal is the shift to electric vehicles (EVs) which has been making waves in the Indian market. With over 16,344 public charging stations as of March 2024, EVs are firmly establishing themselves in India’s urban mobility landscape. Their adoption has been accelerated by the ?11,500 crore budget allocation under the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME II) scheme, which supports two- and three-wheelers, passenger cars and electric buses across 62 cities. The results are quite distinct as EV sales jumped 42% in FY 2023 - 24  to reach 1.67 million units, now making up 6.4% of total auto sales.

In the light of these developments and among the multitude of variables which may facilitate India’s transition to a more sustainable  transportation sector, there are two primary facets which have been under due consideration for the Indian market specifically. These two facets pave the way for a “twin-pronged” approach, where battery electric vehicles (BEVs) power urban mobility with the green hydrogen fuel cell electric vehicles (FCEVs) driving long-haul freight, offering a pathway for the evolution of the transportation sector .

BEVs: Charging Up India’s Cities

Now, the electric vehicle market has for now three types: Battery powered Electric Vehicles (BEV), Hybrid Electric Vehicles (HEV), and Plug-in Hybrid Electric Vehicles (PHEV). Out of these three, India’s EV market for now comprises of PHEVs and BEVs. However India’s market tends to prefer BEVs over the PHEVs as it continues to observe higher sales records, with a predicted 75 % scale by 2030. In fact, TATA motors, which is the top seller of BEVs in India sold approximately 61,496 units in 2024. It has even signed up a deal worth $1.58 billion which would eventually lead to setting up a lithium-ion cell factory in Gujarat, reducing reliance on imports.

Economically, BEVs are becoming increasingly attractive. Lithium-ion battery pack prices have plummeted recording a 14 percent drop, due to which their prices for BEVs in 2023 stood around $128/kW on a volume weighted average basis. Also, startups like ChargeZone and Exicom have begun deploying high-speed DC chargers, trimming recharge times and making BEVs viable for commercial fleets. These initiatives are further supplemented by a range of government subsidies, both at the national and the state level, thereby promoting the growth of the EV sector in India.

However, challenges persist. Even the best BEVS typically offer 150–400 miles per full charge and require 4–8 hours for recharging on Level 2 infrastructure,  which limits their use in long-distance logistics and freight. Therefore, there is an urgent necessity to further bring in better forms of battery technology with increased efficiency  of the charging process.

Also, there are major concerns that BEVs may not be as sustainable as one might think, as a lot of materials used for the batteries may be a bit problematic leading to significant impact on the environment. In fact, there have been suggestions to integrate clean energy throughout the supply chain of such vehicles.

Hydrogen: Powering the Heavy Lifting

The hydrogen demand in India is expected to witness a fourfold increase by 2050, with sectors like transportation and steel compounding to a 52 percent contribution to this growth.  In fact the incorporation of the green hydrogen resources in the fuel cells is expected to rise thereby enhancing the sustainability facet of the mobility sector.

As a result, there are a range of entries into the market incorporating green hydrogen based FCEVs. India’s first such project was the  Toyota Mirai, which offers 402 miles (647 km) per tank and can refuel in just 3–5 minutes, in comparison to diesel trucks. Tata Motors' recent 24-month pilot of hydrogen-powered trucks across key freight corridors demonstrated real-world ranges of 300–500 km under commercial payloads. Also, green hydrogen, while still being expensive, is expected to witness a fall by  40% in prices to ?260–310/kg (US$3–3.75/kg) through renewable power access, GST cuts, and transmission charge waivers. The India Hydrogen Alliance (IH2A) has also initiated a plan to reduce the carbon emissions by the transportation sector through the establishment of e-fuel hubs. These low carbon e-fuel hubs will comprise of resources like green ammonia, methanol and sustainable aviation fuels.

These developments are further supplemented by the National Green Hydrogen Mission - targeting 5 MMT of hydrogen production and 125 GW of renewable capacity by 2030 and  is more than an emissions strategy. It is also a hedge against India’s 85% crude oil import dependency and a bold step toward net-zero by 2070.

These transitions aren't just green - they are gold. The EV industry is projected to create 10 million sales and 50 million direct and indirect jobs in India by 2030 across manufacturing, maintenance, charging infrastructure, and digital services. Also, the hydrogen economy is expected to generate 30 million jobs and revenues worth US$ 2.5 trillion by 2050 globally. With industrial clusters emerging in Gujarat, Tamil Nadu, and Rajasthan, where renewables are abundant, transport decarbonisation can spark regional economic revival.

Policy Recommendations

Now, both these sectors need major developments which may facilitate the decarbonization pathway. However a few initiatives mentioned below may serve to be a starting point:

1. Segmented Technology Rollout

Use BEVS for intra-city commutes, last-mile delivery, and public transport.

Reserve FCEVS for intercity freight, logistics, and long-haul buses—and explore hydrogen-powered trains.

2. Infrastructure Synergy

Develop hydrogen hubs near solar- and wind-rich regions.

Adopting clean energy infrastructure for charging the EV batteries.

Build markets for reusing and recycling EV batteries.

3. Integrated Policy Framework

Align the National Green Hydrogen Mission, FAME II/III, and PLI schemes into a single dashboard tracking emissions, vehicle uptake, and infrastructure rollout, ensuring real-time policy adaptability.

Conclusion

There are states like Delhi and Kerala which are taking significant initiatives. Delhi’s EV policy has catalysed last-mile delivery and ride-sharing electrification. Until early 2024, India had 12,146 operational public EV charging stations, with Delhi having the highest number at 1,886, which is 15.5% of India's total public EV charging stations. Kerala is also developing hydrogen valleys linked to its renewable surplus, setting a template for state-led innovation led by ANERT (Agency for New and Renewable Energy Research & Technology), designed to reduce carbon emissions across critical sectors, particularly transportation.

It's evident that India stands at a pivotal crossroads - not just in mobility, but in its global leadership journey. India can tap into global climate finance resources and carbon markets to de-risk green investments. It can also champion South-South cooperation, sharing its twin-pronged development model with other emerging economies.

A twin-pronged transport decarbonization strategy is more than a policy tool, it’s a national opportunity. With the right mix of technology, financing, and political will, India can reduce its fossil fuel dependence, build climate resilience, and spark a new wave of green industrialisation. This is not just about reaching net-zero by 2070. It's about showing the world how a developing country can leapfrog into clean mobility—not someday, but starting now.