Opinion – Two Powertrains, One Mission: De-risking the Clean Mobility Transition With Hybrids

A nuanced understanding of the austerity calls from Prime Minister (PM) Modi reveals that they were specifically aimed at reducing the forex outflows. In the context of fuels and energy, one of the multiple calls was to adopt electric vehicles (EVs). Given that Indian automakers import more than half of EV parts, the PM’s call needs a critical analysis.

An EV requires an upfront one-time import of multiple critical auto parts for manufacturing, such as batteries, traction motors, integrated chips, power electronics, and charging connectors. Whereas internal combustion engine vehicles (ICEVs), for which India has achieved 90% localisation for manufacturing, cause a continuous forex drain due to fuel imports.

Despite higher running costs for HEVs (compared to EVs) and a limited number of commercial models, these vehicles are gaining popularity primarily due to their ease of ownership (zero range anxiety), followed by higher mileage and lower emissions than ICEVs. Sensing the organic attraction of the Indian consumers towards HEVs, almost all the original equipment manufacturers (OEMs) are looking to introduce HEVs in their product line-ups by 2026-end.

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