EV sales in fast lane but Motown treads the middle path

Mumbai: Automakers in India are aiming for a diversified product roadmap instead of going solely electric. They are continuing to hedge their bets, acknowledging that the future is likely to be a mix of power source options, despite the current EV momentum due to sharply higher fuel prices. Product plans of automakers showed less than half of new car launches planned this financial year are expected to be EVs, with leading manufacturers continuing to invest across petrol, diesel, hybrid, CNG, and flex-fuel technologies. The divergence between rising EV demand and future product pipelines underscores how uncertain carmakers remain about India's automobile transition pathway.

Rather than backing a single technology, automakers are increasingly pursuing a multi-powertrain strategy to balance growth opportunities with profitability and investment risks.

"The market is still evolving unevenly," said a senior executive at a leading carmaker, declining to be named. "In metros, EV interest is rising sharply, but in several segments, hybrids and petrol vehicles remain far more practical from both customer and profitability perspectives. Companies have to prepare for multiple scenarios simultaneously."


Industry executives said evolving regulations, an unclear long-term policy roadmap, uneven charging infrastructure, battery supply concerns, and uncertainty over consumer adoption are forcing manufacturers to diversify across multiple technologies.

While the strategy reduces the risk of backing the wrong technology, it also requires companies and suppliers to support parallel product and manufacturing ecosystems. "Everybody wants an EV story, but when customers walk into showrooms, a large percentage still ask for petrol SUVs or hybrids," said a dealer for multiple passenger vehicle brands, requesting anonymity. "

Investment Pressure
“Companies cannot risk overcommitting to one technology in a market evolving this unpredictably," the dealer said. The approach is adding to investment pressures at a time when the industry is already facing one of its largest capital expenditure cycles. Carmakers are simultaneously investing in EV architectures, hybrid systems, alternative fuels, and cleaner combustion technologies. Suppliers too are getting impacted, having to spread resources across multiple technology platforms.

"As things stand, OEMs are being forced to keep multiple technologies alive simultaneously," said Ravi Bhatia, president, Jato Dynamics. "This is no longer only about production capacity. It is about protecting long-term investments while responding to fragmented consumer market."

The strategy is visible across the industry. Maruti Suzuki is expected to use the e-Vitara to establish its EV presence while expanding hybrid and flex-fuel offerings. Hyundai and Kia are pursuing parallel plans involving localised EVs and hybrids, while Toyota and Honda continue strengthening hybrid portfolios alongside flexfuel programmes aligned with India's ethanol roadmap.

Mahindra & Mahindra, one of the most aggressive proponents of electric SUVs, is scaling up its dedicated EV portfolio with the BE and XEV range while continuing to invest in its highly profitable ICE SUV business. Tata Motors is advancing dedicated EV architectures for future products such as the Sierra EV and Avinya, even as ICE and CNG vehicles continue to account for the bulk of volumes.