Consumers demand for fuel-efficient, says report
Around 1,730,983 hybrid vehicles are expected to be sold by the end of FY2030, a compound annual growth rate (CAGR) of ~34.81% during the FY 2025 – FY 2030 period, according to an industry research report https://www.makeinindia.com/home/.
In FY 2024, a total of 323,913 units of hybrid vehicles were sold across the country, said the report, “Hybrid Vehicles Market in India (2025-2030)” which has been added to ResearchAndMarkets.com’s offering since 21 May.
The hybrid vehicle market is driven by stricter emission norms, rising fuel prices, and consumer demand for fuel-efficient options. The government’s push for electrification, coupled with hybrid incentives, is fostering market expansion http://deutsche-boerse.com.
Major automakers, including Maruti Suzuki, Toyota, and Honda, are investing heavily in hybrid technology. With growing consumer awareness and improving infrastructure, hybrid vehicles are positioned as a crucial bridge between internal combustion engine (ICE) and fully electric vehicles (EVs) https://evindia.online/.
The government’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme continues to encourage hybrid vehicle adoption. As of 2024, hybrid penetration in India’s passenger vehicle segment remains around 2-3%, but is expected to rise significantly as fuel prices remain volatile and urban emissions become a critical issue https://www.bseindia.com/.
Automakers like Toyota, Maruti Suzuki, and Honda have already introduced strong hybrid models, targeting mass-market consumers. Additionally, the expansion of ethanol-blended fuel infrastructure and hybrid-electric drivetrain advancements will drive further adoption https://www.nseindia.com/.
Strong hybrids are witnessing increased adoption due to their superior fuel efficiency and government-backed incentives. Automakers are localizing hybrid technology, reducing dependence on imported components, and enhancing cost-effectiveness.
Ethanol-blended hybrid engines are gaining momentum, aligning with India’s renewable energy goals. Additionally, technological advancements, such as improved regenerative braking systems and AI-driven power management, are optimizing vehicle efficiency. The expansion of sustainable mobility infrastructure is further accelerating hybrid adoption in urban centers https://www.jpx.co.jp/english/.
The government’s Corporate Average Fuel Economy (CAFE) regulations are compelling automakers to develop fuel-efficient hybrid models. Furthermore, investments from companies like Toyota, Maruti Suzuki, and Tata Motors are strengthening the hybrid ecosystem.
However, challenges persist, including high upfront costs and limited tax benefits compared to full EVs. Consumer perception of hybrids as a transitional technology also affects demand, though advancements in hybrid powertrains are gradually shifting preferences.
Key players: Mahindra & Mahindra Limited; Maruti Suzuki India Limited; Tata Motors Limited; Ola Electric Mobility Private Limited; BMW India Private Limited; Honda Motor Company Limited; Hyundai Motor India Limited; MG Motor India Private Limited; Toyota Kirloskar Motor Private Limited and Volvo Group India Private Limited. Fiinews.com
