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The Indian electric vehicle (EV) sector will contribute significantly to the country's plans for decarbonisation towards 2030, according to the Paris-based IEA in its Indian Oil Market — Outlook to 2030 report, emphasising it will eventually affect gasoline demand. New EVs and energy efficiency improvements under India's energy transition plans will cut India's crude demand by 480,000 b/d during 2023-30. India's oil demand would have increased to 1.68mn b/d by 2030 without these steps. The rise in EV use, energy efficiency improvements, as well as growth of biofuels will first affect oil demand in the transportation sector before its impacts are felt in other sectors, it added. India will become the largest source of global oil demand growth between now and 2030 because of industrial growth. But Indian gasoline demand will grow by only 0.7pc during this period, contrary to a rise of 40pc in India's car fleet because of increased consumption of EVs and biofuels. Electrification of India's vehicle fleet will reduce oil product demand by 200,000 b/d by 2030. This means electrification will weigh heavily on gasoline demand in the period up to 2030. A surge in the use of biofuels will also contribute to decarbonisation of the Indian transport sector. Indian ethanol supplies are likely to rise to 200,000 b/d by 2030 from 90,000 b/d currently, while biodiesel supplies will rise to around 90,000 b/d by 2030. The country targets 20pc ethanol blending in gasoline by 2025 and net zero emissions by 2070 Learn Along: About IEA Executive Director : Dr Fatih Birol Headquarters: Paris, France Founded: November 1974
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