The rapid adoption of electric vehicles in India’s emerging market has prompted a major rethinking of the country’s long-term fuel requirements, as refiners in Asia’s third-largest economy accelerate their shift away from oil production. India, one of the world’s fastest-growing oil markets, has lagged behind major economic peers in Europe and Asia in terms of EV adoption, but sales are now picking up, and investment in new autos and energy infrastructure is increasing.
According to some analysts and industry participants, India’s gasoline consumption will peak sooner than previously thought, forcing top oil firms to accelerate transition plans to alternative business lines, particularly increased petrochemical manufacturing.
Slowing fuel demand will be visible by 2030 as EV technologies stabilise, compared to an earlier projection of the 2040s, and also the changes in the heavy trucking sector will come later.
By global standards, India’s progress in EVs is modest, however, last year registered EVs tripled to 1.01 million by 2021, with the majority being two- and three-wheelers. While EVs account for only 1% of the 3 million cars sold each year, New Delhi hopes to increase this to 30% by 2030 and has implemented a variety of policies to that end, including consumer tax breaks. State refiners in India, which dominate fuel retailers, intend to instal EV charging stations at over 22,000 fuel stations and highways by 2024.
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