NEW DELHI — India’s ambitious push toward electric vehicles (EVs) is facing a critical reassessment as policymakers and industry leaders argue that a rigid focus on electrification alone may undermine the country’s long-term sustainability goals. With EV adoption still lagging behind government targets and infrastructure gaps persisting, calls for a technology-agnostic mobility strategy—one that embraces hydrogen fuel cells, biofuels, compressed natural gas (CNG), and other low-emission alternatives—are gaining momentum. The debate comes as the Ministry of Road Transport and Highways (MoRTH) prepares to finalize a landmark policy framework that could reshape India’s automotive future.
What Happened: A Policy Pivot in the Making
For years, India’s mobility transition has been synonymous with electric vehicles. The government’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, launched in 2015 and extended multiple times, has poured billions into subsidies, tax breaks, and manufacturing incentives to accelerate EV adoption. Yet, despite a 49% year-on-year surge in EV sales in 2025, electric vehicles still account for less than 5% of India’s total automobile market—a fraction of the government’s target of 30% electrification by 2030.
Against this backdrop, a growing chorus of experts is urging a broader approach. In June 2026, MoRTH released draft guidelines for a Technology-Agnostic Mobility Policy, proposing a framework that would evaluate all low-emission technologies based on lifecycle emissions, cost-effectiveness, and scalability. The policy, if implemented, would mark a significant departure from the current EV-centric model, instead incentivizing innovation across multiple pathways.
The shift reflects mounting concerns that an over-reliance on EVs could leave India vulnerable to infrastructure bottlenecks, supply chain disruptions, and regional disparities in energy access. A 2025 report by NITI Aayog, the government’s premier policy think tank, warned that “no single technology can address the country’s mobility challenges in isolation,” particularly given the varying needs of urban and rural populations, as well as commercial and personal transport sectors.
Industry leaders have echoed these concerns. Rajeshwar Tripathi, Chief of Human Resources and Sustainability at Mahindra & Mahindra, stated at a recent industry forum that “India’s mobility future must be inclusive, not prescriptive.” While acknowledging EVs as a critical component of decarbonization, Tripathi argued that “we cannot ignore the potential of other clean technologies, especially in segments like heavy-duty transport and long-haul logistics, where battery limitations remain a barrier.”
Why It Matters: The Stakes for India’s Mobility Transition
India’s mobility sector is at a crossroads, where the urgency of climate action intersects with the practical realities of a diverse and rapidly growing economy. The stakes are high:
1. Energy Security and Infrastructure Gaps
India’s electricity grid remains unevenly developed, with rural and semi-urban areas often facing frequent outages. While urban centers like Delhi and Mumbai have seen a proliferation of charging stations, vast swathes of the country lack reliable access to power—let alone EV infrastructure. CNG vehicles, which have seen steady growth (with over 1.2 million registered in 2025 alone, per the Ministry of Petroleum and Natural Gas), offer a more immediate solution for commercial fleets and public transport in regions where grid stability is a concern.
2. Economic and Industrial Competitiveness
The EV ecosystem has attracted $20 billion in investments since 2020, with domestic players like Tata Motors and Ola Electric scaling up production to meet demand. However, a sudden policy shift away from EVs could disrupt supply chains and deter future investments. Anumita Roychowdhury, Executive Director of the Centre for Science and Environment (CSE), cautioned that “the government must strike a balance between supporting existing investments in EVs and creating space for alternative technologies. A sudden policy pivot could create market uncertainty.”
3. Regional Disparities and Sector-Specific Needs
India’s mobility challenges are not monolithic. Urban areas grapple with congestion and air pollution, making EVs an attractive solution for short-distance travel. In contrast, rural regions—where two-wheelers and three-wheelers dominate—face affordability constraints, with EVs often priced out of reach for low-income consumers. Meanwhile, heavy-duty transport, which accounts for nearly 40% of India’s road transport emissions, requires solutions beyond batteries. Hydrogen fuel cells, though nascent, are being piloted for buses and trucks, with the government planning hydrogen refueling stations along key freight corridors.
4. Climate Goals vs. Practical Realities
India has committed to achieving net-zero emissions by 2070, with an interim target of 50% non-fossil fuel-based electricity generation by 2030. While EVs are a key part of this strategy, their effectiveness depends on the carbon intensity of the grid. With coal still accounting for 70% of India’s electricity generation, the environmental benefits of EVs are diminished in regions reliant on fossil fuels. Alternative fuels like biofuels (derived from agricultural waste) and green hydrogen (produced using renewable energy) could offer lower-carbon solutions without overhauling existing infrastructure.
Background and Context: How India Got Here
India’s mobility policy has evolved in fits and starts, shaped by competing priorities—economic growth, energy security, and environmental sustainability.
– The EV Push (2015–2025)
The FAME scheme, initially launched in 2015, provided up to ₹1.5 lakh in subsidies for electric cars and ₹20,000 for two-wheelers. The program was later expanded under FAME II (2019–2024), with a ₹10,000 crore budget to support charging infrastructure and fleet electrification. By 2025, the government had set a target of 30% EV penetration by 2030, though actual adoption remained far below expectations.
– The Rise of CNG and Biofuels
While EVs dominated headlines, CNG vehicles quietly gained traction, particularly in public transport. Delhi, for instance, has over 12,000 CNG buses, making it one of the largest CNG-based public transport systems in the world. Meanwhile, the Ethanol Blending Programme, which mandates 20% ethanol blending in petrol by 2025, has reduced reliance on fossil fuels without requiring major infrastructure changes.
– Hydrogen’s Emergence
Hydrogen fuel cell technology, long dismissed as too expensive, has seen renewed interest. In 2023, the government launched the National Green Hydrogen Mission, with a ₹19,744 crore outlay to develop hydrogen production and refueling infrastructure. Pilot projects, including hydrogen-powered buses in Delhi and trucks in Gujarat, are testing the viability of fuel cells for heavy-duty transport.
– The Policy Reckoning
The push for technology neutrality gained momentum in 2025, as policymakers confronted the limitations of an EV-only approach. The NITI Aayog report highlighted that 40% of India’s districts still lack adequate charging infrastructure, while battery costs remain a barrier for price-sensitive consumers. The draft Technology-Agnostic Mobility Policy proposes a scoring system to evaluate technologies based on:
– Lifecycle emissions (from production to disposal)
– Cost-effectiveness (including infrastructure and operational costs)
– Scalability (potential for mass adoption)
– Energy security (domestic production and supply chain resilience)
Competing Claims and Uncertainty
The debate over India’s mobility future is far from settled, with stakeholders offering divergent perspectives on the best path forward.
Proponents of Technology Neutrality Argue:
– Flexibility is Key: A single-technology approach risks locking India into a solution that may not suit all regions or use cases. Hydrogen, biofuels, and CNG could play complementary roles, particularly in sectors where EVs are impractical.
– Infrastructure Constraints: India’s grid cannot yet support mass EV adoption. CNG and biofuels offer immediate emissions reductions without requiring major infrastructure upgrades.
– Industrial Opportunities: A diversified approach could spur innovation across multiple sectors, from green hydrogen production to biofuel refining, creating new economic opportunities.
Critics of the Shift Warn:
– Investor Confidence at Risk: The EV ecosystem has attracted billions in investments, and a sudden policy shift could deter future funding. Tata Motors, Ola Electric, and Mahindra have all ramped up EV production, and a dilution of support could disrupt their plans.
– Policy Fragmentation: State governments have pursued divergent strategies—Delhi and Maharashtra have aggressively promoted EVs, while Gujarat and Uttar Pradesh have focused on CNG and biofuels. A national policy that fails to account for these differences could lead to uneven implementation.
– Climate Impact: While alternative fuels have merits, EVs remain the most efficient solution for urban transport, where tailpipe emissions are a major concern. A technology-agnostic approach could delay decarbonization if it leads to prolonged reliance on fossil-based fuels like CNG.
Unanswered Questions:
– Will the government phase out EV subsidies? The draft policy does not explicitly call for an end to EV incentives, but it suggests redirecting support toward technologies that meet lifecycle emissions and cost-effectiveness criteria.
– How will regional disparities be addressed? A national policy must account for varying energy access, industrial capacity, and consumer preferences across states.
– What role will private sector innovation play? Companies like Reliance Industries (hydrogen) and Indian Oil (biofuels) are investing in alternative fuels, but their success depends on policy clarity and infrastructure support.
What to Watch Next: Key Developments on the Horizon
1. Finalization of the Technology-Agnostic Mobility Policy
MoRTH is expected to release the final policy framework by late 2026, with implementation likely in early 2027. The policy’s scoring system for technologies will be closely watched, as it could determine which fuels receive government support.
2. State-Level Responses
States with strong EV ecosystems (e.g., Maharashtra, Karnataka) may resist a shift away from electrification, while those with CNG or biofuel infrastructure (e.g., Gujarat, Uttar Pradesh) could push for greater policy flexibility.
3. Hydrogen and Biofuel Pilots
The success of hydrogen-powered buses in Delhi and biofuel blending programs will shape the viability of these alternatives. If pilots prove cost-effective, they could gain greater policy and industry support.
4. EV Industry Adaptation
Automakers like Tata Motors and Mahindra may diversify their portfolios to include hydrogen or biofuel-compatible vehicles, hedging against policy changes. Ola Electric, which has bet heavily on two-wheelers, could face challenges if subsidies are reduced.
5. Global Trends and Trade Implications
India’s mobility policy could influence global supply chains, particularly for battery minerals and hydrogen technology. A shift toward technology neutrality might reduce dependence on China (a dominant player in EV battery production) but could also complicate trade partnerships with countries investing heavily in EVs.
Conclusion: A Balancing Act for India’s Mobility Future
India’s mobility transition is no longer a question of if but how. The government’s push for a technology-agnostic approach reflects a growing recognition that no single solution can meet the country’s diverse needs. While EVs will remain a critical part of the equation—particularly in urban areas—alternative fuels like **hydrogen, biofuels
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