In an exclusive interview with Auto India Daily, Abhinav Kalia, Co-Founder and CEO of ARC Electric, discusses fleet electrification, charging infrastructure, CAFE-III norms and why India’s mobility future will depend on choosing the right powertrain for the right application.
India’s automotive industry is moving towards a more diverse powertrain landscape, with electric vehicles, hybrids, CNG and conventional internal combustion engine (ICE) vehicles competing to meet different mobility requirements. However, the transition is about more than introducing new technologies. Vehicle utilisation, operating costs, charging access and long-term ownership economics will play an equally important role in determining which solutions make sense for individual buyers and commercial fleet operators.
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For businesses, electrification brings opportunities to reduce operating expenses, but the financial benefits depend on route planning, vehicle utilisation and charging availability. For private buyers, the decision involves balancing purchase prices, running costs, infrastructure access and expected ownership periods.
In this exclusive interview with Auto India Daily, Abhinav Kalia, Co-Founder and CEO of ARC Electric, shares his perspective on India’s evolving automotive landscape, the impact of upcoming CAFE-III regulations, the challenges facing charging infrastructure and the factors businesses and consumers should consider before committing to a particular powertrain.
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Interview with Abhinav Kalia, Co-Founder and CEO of ARC Electric
Auto India Daily: How is the shift towards EVs changing the way businesses approach fleet costs, utilisation and operational efficiency?
Abhinav Kalia: One of the most important transformations happening today is the shift from viewing mobility merely as an operational cost to treating it as an operating system. In corporate fleets, vehicle acquisition cost is only one part of the equation. Vehicle usage, energy consumption, downtime and route efficiency can have a significant influence on the overall economics of a business.
At ARC Electric, we believe allocating vehicles to fixed routes and schedules is essential. Electric vehicles can cost around Rs. 2 per kilometre to operate, compared with Rs. 5–6 per kilometre for conventional vehicles, depending on the vehicle category and operating conditions.
However, poor route planning and inadequate charging arrangements can reduce these benefits. Businesses must therefore evaluate both the total cost of ownership and the reliability of their operations rather than focusing solely on the initial vehicle cost or potential fuel savings.
Auto India Daily: With EVs, hybrids, CNG and ICE vehicles competing for attention, what is driving India’s shift towards a multi-powertrain future?
Abhinav Kalia: India’s shift towards multiple powertrain technologies is driven by the diverse nature of its mobility requirements. Urban commuting, intercity travel, commercial fleets and logistics operations all have different needs in terms of distance, operating hours, infrastructure and cost. No single powertrain can address every requirement equally well.
EVs are well suited to regular, high-utilisation routes where charging can be scheduled around operational requirements. Hybrid powertrains offer flexibility across varying driving conditions, while CNG and conventional vehicles remain relevant because of factors such as refuelling infrastructure, cost and long-distance travel requirements.
The scale of this transition is significant. India recorded more than three lakh EV retail sales in June 2026. However, the next step is to translate this adoption into effective utilisation. Technologies will ultimately demonstrate their value through practical performance and economics, not just impressive headline numbers.
Auto India Daily: How could CAFE-III norms reshape automakers’ strategies and influence the powertrain options available to consumers and fleet operators?
Abhinav Kalia: With CAFE-III norms expected to take effect from April 2027 through March 2032, fleet fuel efficiency and emissions will become increasingly important considerations in automakers’ product strategies.
Manufacturers will need to balance regulatory requirements with affordability, customer demand and the cost of developing different technologies. This could encourage greater investment in alternatives such as EVs and hybrids, as well as more efficient internal combustion engines, rather than necessarily creating a market dominated by a single powertrain.
For consumers, these developments could influence model availability, pricing and the importance of practical fuel efficiency when selecting a vehicle.
For fleet operators, the key question will be how regulatory changes affect total cost of ownership and vehicle suitability. Regulations can encourage technological innovation, but they do not automatically make one solution the most economical for every route. Businesses will still need to evaluate technologies against their specific operating requirements.
Auto India Daily: What determines whether fleet electrification makes commercial sense, particularly for high-utilisation and multi-shift operations?
Abhinav Kalia: The commercial viability of fleet electrification depends on how vehicle utilisation, charging time and charging costs work together. Higher daily utilisation can improve the economics of an EV because lower operating costs accumulate over greater distances. Multi-shift operations, however, leave less time for charging between assignments.
Businesses should begin with detailed route planning, including daily distance, passenger numbers, idle time and turnaround requirements. They must then account for vehicle purchase or leasing costs, energy, maintenance, insurance, financing, charging and downtime.
At ARC Electric, we view route planning as a key element of efficient fleet operations. Our micro-clustering approach focuses on aligning vehicle utilisation with local mobility patterns to reduce unnecessary empty driving.
The objective should be to begin electrification with routes that are operationally suitable, measure the results and expand only after the benefits have been established. A planned transition can help businesses manage costs while reducing the risks associated with changing their fleet technology.
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Auto India Daily: What gaps remain in India’s charging infrastructure for private vehicle owners and large commercial fleets?
Abhinav Kalia: India’s charging challenge is no longer simply about adding more charging points. It is also about building infrastructure that supports actual mobility patterns. Public charging points are important, but their presence does not guarantee convenient access at the right location and time.
Private vehicle owners need charging access at home, workplaces and along highways. This is particularly important for people living in apartment buildings without dedicated parking spaces. Commercial fleets have a different requirement: vehicles need to be charged within limited time windows without disrupting operations across multiple shifts.
Depot and workplace charging can give fleet operators greater control, while public infrastructure provides additional flexibility. Infrastructure planning must also consider electricity availability, charger reliability, the ratio of chargers to vehicles and peak-hour demand.
Charging infrastructure should be developed around real-world mobility and utilisation patterns. The objective is not just to increase the number of chargers, but to reduce charging-related downtime and improve vehicle availability.
Auto India Daily: With E20 fuel adoption and evolving vehicle technologies, what should buyers understand before committing to a powertrain for the long term?
Abhinav Kalia: The adoption of E20 fuel, alongside the growing availability of EVs and hybrids, reinforces the importance of evaluating a vehicle across its entire ownership period.
E20 contains 20% ethanol. Buyers should follow the vehicle manufacturer’s guidance regarding compatibility with this fuel and its suitability for their particular model.
Fuel efficiency is another important consideration. Even when fuel prices are reasonable, differences in mileage can affect the overall cost of ownership. Similar considerations apply to EVs, where buyers should assess charging accessibility, battery warranties, battery-related costs and potential resale value.
Ultimately, consumers need to distinguish between the benefits a technology offers in theory and how well it suits their individual requirements. Annual driving distance, expected ownership period and maintenance costs should all influence the decision.
Auto India Daily: How should consumers decide between EVs, hybrids, CNG and conventional petrol or diesel vehicles?
Abhinav Kalia: Consumers should begin by evaluating their mobility requirements rather than choosing a technology first.
Someone who drives predictable, relatively short distances within a city and has access to home charging may find an EV both practical and cost-effective. Someone who regularly travels long distances to different destinations, particularly where charging access is inconsistent, may find a hybrid or conventional vehicle more suitable. CNG can also be an option for high-mileage users where refuelling infrastructure is convenient.
The comparison should extend beyond the purchase price to include fuel or electricity costs, maintenance, insurance, financing and resale value. Parking availability, charging time and the expected ownership period also matter.
One important lesson from commercial mobility is that utilisation influences economics. Driving more kilometres can increase operating-cost savings, but only when the vehicle is being used efficiently. Consumers should therefore choose a powertrain based on their own requirements rather than assuming that a solution suitable for one person will work equally well for everyone.
Auto India Daily: What will determine the pace of India’s mobility transition, and what can businesses do today to make their transport operations more cost-efficient and future-ready?
Abhinav Kalia: A successful mobility transition in India will require the effective integration of vehicles, charging infrastructure, energy sources and economic considerations. Greater EV adoption will be one part of this transformation, but long-term success will also depend on servicing, convenient charging, financing and measurable emissions reductions.
Businesses do not necessarily need to switch their entire fleets to electric vehicles immediately. They can begin by analysing costs route by route, identifying routes with consistent utilisation and assessing their charging requirements.
Establishing a baseline for operating costs and emissions will help businesses measure whether electrification is delivering the intended benefits.
At ARC Electric, we believe the future of commercial mobility will be shaped by operational efficiency alongside advances in vehicle technology. Better route planning, higher occupancy and improved vehicle reliability can complement electrification.
Ultimately, the goal should be to create a viable, reliable and environmentally responsible transport system rather than measuring success solely by the number of electric vehicles deployed.
Editorial Note: This interview is based on written responses provided by ARC Electric through its PR representative. The answers have been edited for clarity and readability without intentionally changing their intended meaning. The views expressed are those of Abhinav Kalia and do not necessarily reflect the views of Auto India Daily.
Auto India Daily did not receive any payment or publishing fee for this interview. Figures and claims shared by the interviewee are attributed to ARC Electric and should be read in that context.
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Raj Prajapati is a Senior Automotive Content Writer at AutoIndiaDaily. A B.Tech graduate in Computer Science and Engineering, he leverages over four years of experience covering Indian car and bike launches, EV tech, and market dynamics to break down complex automotive regulations into simple consumer guides. Specialising in Indian motor vehicle laws, IRDAI updates, and ownership costs, Raj translates technical auto policies into actionable advice for everyday drivers.