'EVs are fastest route to cut oil imports': ICCT CEO flags limits of ethanol for India

Electric vehicles (EVs) offer the fastest pathway for India to reduce its dependence on imported crude oil, according to Rachel Muncrief, CEO of the International Council on Clean Transportation, who spoke to Business Today during her visit to New Delhi.

With India importing over 85% of its crude requirements, Muncrief said the shift to electric mobility is not just a climate imperative but a core element of energy security. 

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“EV adoption is the fastest way for countries like India to move towards energy independence,” she said.

EVs vs ethanol

Comparing EVs with ethanol-blended fuels such as E85 fuel, Muncrief said ethanol has limitations despite its success in select markets.

She cited Brazil as a leading example of ethanol adoption but noted that the technology falls short on efficiency and long-term economics.

“Ethanol vehicles don’t get the best fuel efficiency and are not seen as a highly cost-effective technology,” she said.

In contrast, she added, EVs are already competitive in several segments and are likely to achieve broader cost parity within the next few years, while also delivering better outcomes on emissions and public health.

Global momentum building

Muncrief pointed to rapid EV adoption globally, including in Indonesia, where the market has grown from near zero to about 30% in five years.

“That’s the kind of growth we are now seeing in different parts of the world,” she said.

She also highlighted China’s early and sustained push into EVs as a key reason for its dominance.

“China planned its EV transition 10–15 years ago and capitalised on that first-mover advantage.”

Policy: Keep CAFE focused, use incentives

On India’s upcoming fuel efficiency norms, Muncrief said regulation should remain focused on tailpipe emissions, while EV adoption is better driven through incentives.

“The recommendation is to stick to regulating the tailpipe, while using incentives to accelerate EV uptake.”

Next focus: heavy vehicles

While passenger EVs are nearing cost parity with conventional vehicles, Muncrief said the next big shift must come from electrifying heavy transport.

“The focus now needs to move towards trucks and buses.”

These segments account for a disproportionate share of emissions and fuel consumption, making them critical to India’s transition.

India’s supply chain opportunity

Muncrief also flagged battery supply chains as a key strategic opportunity, with countries looking to diversify beyond concentrated manufacturing hubs.

“India has a real opportunity to become a leader in diversified battery supply chains,” she said, pointing to potential collaborations with Europe and other emerging markets.