The Indian Automotive Industry is today amongst the fastest growing automotive industries globally. It is expected that, by 2020 the annual demand for passenger vehicles, commercial vehicles and two wheelers in India will be 10 million, 2.7 million and 34 million units respectively, thereby making India the third largest vehicle market in the world.


India depends largely on oil imports to meet energy needs. The percentage of oil imported by India has risen from 57% in 1997 to 85% in 2016 ;  this is likely to reach 97% of the total demand by 2020.

Indian petroleum imports account to around 40 per cent of the total imports.”In rupee term, import of crude oil, was Rs 4,18,931 crore in 2015-16, down from Rs 6,87,416 crore a year ago.

Figure 1 : Crude oil price and consumption trend in India [2000 – 2016]

Oil Price trend

Source :

It can be inferred from figure 1, the consumption of crude oil in India has been continuously increasing since 2000. However, the crude oil price has witnessed sharp decline since 2014.


As Per the EIA’s recent report,

  • India’s demand for oil in 2015 : Around 4.1 million barrels per day (b/d) 
  • Total in domestic liquids production in 2015 : Around 1 million b/d 
  • OPEC has estimated that India’s demand for oil will reach 10 million b/d by 2040. 


  • India’s import of $250-$300 million of oil and gas per day raises doubts on the country’s ability to maintain its current high rates of economic growth over the next decade.
  • Due to India’s dependence on imports , India’s energy security would remain a cause of concern.
To conclude, India acknowledges the negative implications of increased dependence on foreign countries for the import of crude oil due to geopolitical uncertainties and volatility in the international oil markets.


Globally Automotive Industry is passing though a paradigm shift. The past century has been the era of Internal Combustion engine (ICE) primarily on account of the ease of use, availability and low cost of fossil fuels. The shift to electric mobility has become necessary on account of fast depletion of fossil fuels, rapid increase in energy cost, impact of transportation on environment and concerns over climate change.

As per IEA report of 2009, fossil fuel based transportation is the 2nd largest source of CO2 emission globally. From 2006 to 2030, the global energy consumption is likely to rise 53% and about three quarters of the projected increase in oil demand will come from transportation. World over these concerns are driving Government & Automotive Industries alike to invest heavily towards developing vehicle based on alternate propulsion systems including electric mobility.


Its time to think ????  ” In India, transportation sector alone accounts for about one third of the total crude oil consumption and road transportation accounts for more that 80% of this consumption.” 

Therefore, the Government will need to focus on this sector and partner with industry for investing in sustainable mobility solution for the future. Hence it is imperative that National approach for energy security and for mitigation of the impact of mobility on environment and climate change also focuses on the greater adoption of  xEVs i.e. Full range of EVs from Mild Hybrid to Pure Electric vehicles.


India is depending on oil imports largely for the energy needs. The share of oil imported by India was 57% at 1997, and it’ll be 97% for 2020.

An emission from the transport sector is the key source of air pollution next to power sector in India. 13/ 20 cities in the world with highest air pollution are positioned in India.

Transport and power sector have a significant effect in worsening air quality. As for these reasons the exploration of a different kind of transportation is required.

Electric Vehicles (EV) are proving to be an absolutely new way to store and consume mass amounts of energy from the power grid.

Battery Electric Vehicles (EV) and Plug-in Hybrid-Electric Vehicle (PHEV) offers beneficial rewards compared to the conventional ICE vehicle.

Thus, ELECTRIC VEHICLES can provide significant contribution in enhancing fuel security and sustainable mobility.


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