Report by KPMG in India – Automotive Fuel: Racing towards a multipolar world

The report attempts to analyse important factors impacting the choice of automotive fuel, emerging arguments in favour of and against the various alternative fuel technologies (BEVs, Hybrids and FCEVs); and provides a view on how these technologies are likely to evolve across the globe and in India. We have also commented on the new roles evolving in the mobility ecosystem along with the role of the government in driving this transformation.

Vinodkumar Ramachandran, Head of Industrials and Automotive, KPMG in India says, “At this stage, no single technology appears to satisfy all key criteria and meet the needs of different consumer segments. The report puts forth our thoughts on likely evolution of alternative fuel technologies, country specific compulsions that will determine adoption of one technology over another and necessary conditions for consumers to embrace EVs.”

Some important highlights from the report:

  1. Auto industry on the brink of disruption:
  • Market forces and government initiatives are expected to bring about changes in energy sources for vehicles
  • Three key factors – Aggregate emissions reduction, achieving country specific economic mandates and meeting consumer expectations; determine the choice of automotive fuel
  1. The electric vehicle revolution:
  • Battery and hybrid vehicles are leading the shift from ICE vehicles
  • However, consumer concerns regarding cost, charging experience and range remain a barrier in their wide scale adoption
  1. The promise of hydrogen powered FCEVs:
  • Fuel cell electric mobility emerged as the top-most trend in ‘KPMG’s Global Automotive Executive Survey 2018’
  • FCEVs have advantage over BEVs in refueling time, range and weight; but, the cost and hydrogen infrastructure obstacles need to be tackled
  1. Towards a multipolar world:
  • Executives predict an even split in drivetrain technologies by 2040
  • Different technologies likely to play a complementary role to best meet consumer expectations in their specific areas of applications
  1. Government’s role in this transformation:
  • Emergence of new roles in mobility ecosystem presents exciting opportunities for all players
  • The government’s role is critical in establishing a clear policy framework and incentivising consumer adoption and infrastructure creation

Link to the full Report:

EV Conclave E Version