As we step into 2024, the mobile marketing landscape is poised to take a significant turn with the emergence of hydrogen-powered vehicles. In this article, we'll explore the exciting developments in the world of green mobility and what it means for the industry.
Laying the Groundwork
In recent years, electric mobility has gained momentum, but many experts believe that 2024 will be the year when India's engagement with alternative fuel - particularly hydrogen - starts to gather pace. To achieve this, both the government and the automotive industry are expected to develop the base infrastructure and policy support.
Hydrogen: The Silver Bullet
Not everyone is impressed by electric vehicles (EVs). According to Kabir Bogra, Partner at Khaitan & Co., "Electric vehicles are no longer considered the silver bullet solving the twin problem of emissions and our large import bill. We are effectively just moving the emissions from one place to the other in the chain." Hydrogen is expected to emerge as a viable commercial option for both passenger and commercial vehicles, playing a significant role in resolving both problems.
Kickstarting the Revolution
On the ground, the Union Government has launched the National Green Hydrogen Mission with an aspiration to develop a production capacity of at least 5 MMT per annum, bringing in investments of about Rs 8 trillion. Tata Motors and Ashok Leyland have showcased heavy-duty trucks with hydrogen internal combustion engine (H2ICE) technology at the Auto Expo. Omega Seiki Mobility is set to launch a hydrogen-fuel cell-powered three-wheeler by mid-2024.
The Future
According to BlueWeave Consulting, between 2023 and 2029, India's hydrogen fuel cell vehicle market size is projected to grow at a compound annual growth rate of 27.66%, reaching a value of $347.85 million by 2029 from about $80.36 million in 2022.
Overcoming Challenges
While estimates on the share of hydrogen vehicles are still speculative, as the technology is in its nascent stages, projections for India's electrification of its vehicles peg it at just 10-12% by 2030, well below China's 48% and USA's 27%. EVs will remain a better proposition for urban intra-city mobility, while hybrids will take on intercity (long-haul) transportation.
Action Required
To overcome the challenges and economic viability of production, transport, and storage, efforts are underway to produce synthetic hydrogen, the carbon capture way. Government incentives like PLI will boost domestic production of electrolytes and bring down costs, helping the segment to take off.