How Electric Vehicles and the Startup Ecosystem Are Driving Innovation in the Fueling Sector

The fueling sector in India is undergoing a fundamental shift, driven by the rapid adoption of cleaner and more sustainable options like CNG and electric-powered vehicles (EVs), along with the rise of startups disrupting traditional refueling models. While the conversation around EVs often focuses on vehicle adoption, the real challenge and opportunity lie in building a robust fueling infrastructure that supports both EVs and cleaner alternatives like CNG.

The Indian government is targeting 30% EV penetration by 2030 while simultaneously pushing for a stronger CNG network. As a result, the fueling sector will no longer depend solely on petrol or diesel. Instead, it will evolve into a smart, connected, and multi-fuel ecosystem that powers not only public mobility but also national progress toward becoming an environmentally conscious country. Moreover, startups are at the forefront of this transformation, leveraging technology to bridge gaps in accessibility, affordability, and efficiency.

What’s the Need for Innovation in India’s Fueling Sector?

According to the Bureau of Energy Efficiency, India’s transportation sector accounts for roughly 18% of the country’s oil demand, making it a major contributor to fossil fuel dependency and carbon emissions. With crude oil imports surpassing $132.4 billion annually, reducing reliance on conventional fuels like petrol and diesel is not just an environmental necessity but also an economic imperative.

The government has set ambitious targets for EV sales: 30% of private cars, 70% of commercial vehicles, 40% of buses, and 80% of two- and three-wheelers by 2030. This transition demands an extensive, intelligent, and user-friendly fueling infrastructure—one that startups must actively help build to facilitate and accelerate this transformation.

Is There a Shift in the Fueling Landscape?

India’s fueling infrastructure is rapidly evolving to support a cleaner mobility ecosystem. This shift is evident in key trends, such as a 49% year-on-year increase in EV sales in 2023, with over 1.5 million EVs sold.

Another significant trend is the rise in the number of CNG stations, which increased from 1,300 to 5,000 by the end of 2022. The government plans to launch 16,500 new CNG stations by 2030 to make CNG widely accessible and to align with the nation's commitment to achieving net-zero carbon emissions by 2070.

While early EV adopters were motivated by cost savings and sustainability, the focus has now shifted to convenience. Long charging times and range anxiety remain major concerns—creating a demand for faster, more accessible fueling solutions. As consumers seek reliable and cost-effective options, startups are stepping in with innovations designed to build a cleaner fueling ecosystem.

What Are the Challenges Hindering This Innovation?

Despite progress, the startup ecosystem faces several challenges that are slowing down fueling innovation:

• Slow but progressive adoption: Although Indians are open to change, the adoption curve for new technologies remains gradual. While the younger generation is more eager to embrace solutions offering convenience and speed, a large part of the population still belongs to an older demographic—slowing the overall pace of adoption.

• Infrastructure costs: Establishing EV charging stations can be capital-intensive, with costs ranging from INR 2–5 lakh for slow chargers and over INR 30 lakh for fast chargers. Large-scale deployment remains challenging without sufficient financial backing.

• Regulatory bottlenecks: The lack of standardization in battery swapping, interoperability of charging networks, and ambiguous CNG pricing policies creates hurdles. These challenges can impede infrastructure development in the short term. However, if strategically addressed, they can pave the way for long-term, scalable growth.

What Role Are Startups Playing in Fueling Evolution?

Fueling infrastructure in India is no longer the exclusive domain of large oil companies and public sector enterprises. Startups are disrupting the space with solutions that integrate digital technology, real-time analytics, and alternative fuel distribution models:

• Smart EV charging networks: Startups are transforming the EV charging experience using IoT and AI, offering real-time dashboards that display station availability, charging times, and predictive maintenance—ensuring a seamless user experience.

• Battery swapping for efficiency: Inspired by China’s nearly 3,000 battery-swapping stations, Indian startups like Sun Mobility and Battery Smart are developing similar infrastructure. These solutions are particularly effective for delivery fleets and urban commuters, helping to eliminate charging time as a bottleneck.

• Multi-fuel hubs: Traditional fuel stations are evolving into multi-energy hubs offering petrol, diesel, CNG, and even solar-powered EV charging under one roof. This model builds trust in developing and rural areas, showcasing accessible clean energy options across Tier 3 and 4 cities.

• Mobile fuel delivery solutions: Startups like Repos Energy are pioneering mobile fuel delivery services that supply fuel directly to businesses and industries—reducing dependence on conventional refueling infrastructure.

These innovations not only improve convenience but also reshape consumer behavior, making cleaner fuel alternatives more practical and desirable. The future of fueling in India will likely involve a convergence of EVs, CNG, and other alternatives—supported by AI-driven fuel distribution systems to minimize waste and maximize efficiency.

Public-private partnerships between startups, traditional fuel providers, and government bodies will be instrumental in accelerating the development and innovation of fueling infrastructure.

The Road Ahead

India’s fueling sector is no longer just about petrol pumps and traditional refueling—it is evolving into a dynamic, multi-fuel ecosystem driven by technology, environmental urgency, and shifting consumer demands. Startups are spearheading this change by making EV charging smarter, battery swapping more efficient, and alternative fuels more accessible.

However, to scale this transformation, India must address challenges related to infrastructure cost, regulatory frameworks, and consumer adoption. A collaborative approach involving startups, policymakers, and industry stakeholders is essential.

The time to act is now. To keep pace with accelerating EV adoption, innovation must move at a faster rate. Together, startups, industry leaders, and the government must build a fueling network that is not only sustainable—but also future-proof.

Vaibhav Kaushik is CEO and Co-founder of Nawgati. Views expressed are the author's own.