A Brief study on the Scope of AFV Market Growth in Bihar

Abstract

The global automotive industry is undergoing a decisive shift away from conventional petroleum-based vehicles toward Alternative Fuel Vehicles (AFVs), a category that includes battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and other non-conventional fuel platforms. India, as one of the fastest-growing large economies, has emerged as an important participant in this transition, and Bihar—historically viewed as a late adopter of automotive innovation—has shown a notable acceleration in AFV uptake following the introduction of the Bihar Electric Vehicle Policy, 2023. This study examines the relationship between the growth of the AFV market and broader economic growth in Bihar, using secondary data drawn from government transport records, the state Economic Survey, and industry and academic publications. The study adopts a descriptive-analytical research design and employs trend analysis, percentage growth computation, and correlational reasoning to examine patterns between AFV registrations and macroeconomic indicators such as Gross State Domestic Product (GSDP) and sectoral growth in transport and services. The findings indicate that AFV registrations in Bihar increased by 113 percent between 2023–24 and 2024–25, a period that coincided with the state recording one of the highest GSDP growth rates among Indian states. While a direct causal relationship cannot be established from secondary data alone, the study finds a discernible positive association between policy-driven AFV market expansion and indicators of transport-sector and overall economic growth, alongside emerging opportunities for employment generation, energy security, and industrial investment. The study concludes with policy-oriented recommendations for strengthening charging infrastructure, manufacturing incentives, and rural market penetration in Bihar.