EV Adoption May Not Curb India's Road Fuel Demand Until 2034: Report

New Delhi, Nov 14 (KNN) India's road transport fuel demand is expected to continue rising until 2034 despite growing electric vehicle (EV) adoption, as an expanding vehicle fleet and higher commercial transport use sustain oil consumption, according to BloombergNEF's (BNEF) India Electric Vehicle Outlook 2026.

The report projects road fuel demand to peak at more than 2.5 million barrels per day in eight years before gradually declining. Increasing adoption of electric two-wheelers, three-wheelers and passenger cars is expected to eventually outweigh growth in commercial vehicle fuel consumption, Bloomberg reported.

EV sales in India exceeded 2.4 million units last year. However, BNEF estimates that, apart from three-wheelers, no vehicle segment is on track to meet the country's 2030 electrification targets.

The outlook suggests India's continued fuel demand growth could sustain global oil consumption even as emissions growth slows. 

According to the latest Global Carbon Budget, global emissions have yet to peak, while China, which accounts for about one-third of annual global emissions, is expected to record a decline this year.

BNEF estimates that expanding India's EV charging infrastructure will require around USD 29 billion in investment by 2040, highlighting the scale of infrastructure development needed to accelerate the transition.

(KNN Bureau)