With tightening emission norms, policy push and evolving TCO dynamics, there has been a gradual rise in adoption of alternative fuels in the Indian CV ecosystem. ICRA expects alternative fuels (mainly CNG and EV) to sustain the gradual rise in penetration across various CV subsegments, with the penetration expected to remain more prevalent in LCVs (50-55%) vis-à-vis M&HCVs (25- 30%) by FY2030.

Exhibit: Lifetime emissions across powertrains for heavy-duty vehicles in grams/km

Source: International Council on Clean Transportation