I checked in our apartment parking lot; we have 0 electric
or hybrid cars, many electric two-wheelers, and a total of 40 cars. Maybe all of
us living here are late adopters. So, I checked the Manipal Hospital parking lot, which
is within walking distance from my place. It had 3 Battery EVs (BEV), 3 hybrids, and a total of 40
cars. In 2025, BEVs accounted for around 5% (up from 2.6% in 2024) and hybrids another 2-3% of the cars
sold in India. Fast charging stations may be quite limited once you leave the
city. Overall, the adoption is growing but low.
In the US, the Big Three, Ford, Volkswagen, and GM, have scaled
back their EV strategy recently. Ford has taken a huge write-off of $19.2
billion. GM’s charge on reassessment of EVs is lesser $1.6 billion. One sector
where car-related anxieties get amplified is rentals. In the US, Hertz went
public in 2021 after emerging from bankruptcy. In the same year, it made a
pivot to electric and made a bulk
purchase of 100,000 Teslas – estimated to cost around $4.2 billion. In just
two years, range anxiety, charging station paucity, and unfamiliarity all had a
combined effect of customers not opting for EVs and resulting in higher-than-expected
collisions and damages. Hertz declared in its 10-K filings that it would “significantly
reduce the size” of its global EV fleet. It finally took half a billion in
write-downs and disposal losses by end of 2024.
On the regulatory front, on December 16, 2025 EU moved
away from its 2035 100% EV mandate to allow for a 90% reduction in CO₂
emissions by 2035, which creates a 10% 'flexibility gap' for highly efficient
hybrids and combustion engines. The EU was following the footsteps of the Trump
administration, rolling
back the “EV mandate” in early December. US automakers are now required to meet
an average of 34.5 mpg (miles per gallon) across their model fleet by 2031, a
dramatic drop from the average of 50.4 mpg 2013 mandate proposed by the Biden administration.
In India, the EV policy favours BEVs. FAME
II subsidies apply to BEVs, not to hybrids. Tata and Mahindra have taken the BEV-only route so far, while Maruti and Toyota are pushing for hybrids. The 2023
IIT Kanpur study and the 2025 International Council on Clean Transportation report
on life-cycle greenhouse gas emissions indicate that HEVs may be at least
comparable if not better than BEVs in the Indian context. Such studies are
region-specific, where “cradle-to-grave” analysis consists of vehicle
manufacturing, usage, maintenance, recycling of components, and finally,
disposal. The “well-to-wheel” analysis includes oil extraction, feedstock
cultivation, transportation, refining, fuel production, blending, and supply. IIT
Kanpur study considers India’s electricity generation mix from thermal,
nuclear, solar, wind, and hydropower plants in different regions. Why do Indian policies favour BEVs?
One thing I learnt from the
Epstein saga is to follow the funding sources. Epstein donated money to
Harvard, MIT, Clinton-related entities, etc., and, in turn, received money from Leslie
Wexner (Victoria’s Secret), billionaire Leon Black, etc. Could India’s EV policy
be influenced by the big corporations? Yes, it is possible. During the 2024 Lok Sabha
Polls, Tata Group-backed Trust donated
₹757 crore to the BJP and ₹77 crore to the Congress. Who knows how favours get
returned? Or, could it be a bias due to the "Make in India" initiative, favouring Tatas and Mahindras against Suzuki and Toyota? The IIT Kanpur study was supported by the New Energy and Industrial
Technology Development Organization (NEDO), Japan. Could there be a bias in this study towards hybrid due to the sponsorship? Yes, it is possible.
Currently applicable (2022-27), the Corporate Average Fuel Efficiency-II (CAFE-II) norms require an average efficiency of ~113 g CO₂/km. That is 48 miles
per gallon (mpg), which is roughly where US norms were before being relaxed this month to 34.5 mpg, corresponding to 158 g CO₂/km. Maruti’s R C Bhargav
may have a point when he
said last month, “The norms of CAFE, as they have been framed, actually
favour bigger cars. As weight decreases, the norms become less and less favourable
for smaller cars.” The smallest Tata car
(Tiago 1.2, 1050 kg) weighs 25% more than WagonR (850 kg). Mahindra discontinued
the compact car of a similar size (KUV100 NXT, 1085 kg). For Tata Motors, compact
cars account for 16% of its passenger car sales. Small cars is a shrinking
market in India, while SUVs is a growing market. It is in the interest of Tata
Motors and Mahindra to sell us the dream of SUVs.
I drive occasionally. I purchase all groceries by walking
around, use a cycle for going to the Metro station, bank, post office, and anything
within a 2-3 km radius. Taking the car out to a nearby restaurant is problematic
because finding a parking space is a challenge. My maximum mileage may have come from
commuting to the IIM campus. In the coming year, the metro line to IIMB may become
operational, and my car usage may reduce further. I travelled to Kallianpur (near
Udupi) and Gokarna this month for holidays by train and bus. I take the KIAL bus to
commute to and from the airport many times. I don’t see any reason for buying
an SUV. I feel it is too big to maneuver, less efficient than a compact, too cumbersome to
find a parking space, especially if you don’t have a driver. And, BEV is not
suitable when the usage is infrequent. Unlike an IC engine, a battery degrades
even when parked.
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