HomeOther Energy Applications ›Full EV Switch in 44 Indian Million-plus Cities Can Reduce 61 Million Ton CO₂ Emissions: TERI

Full EV Switch in 44 Indian Million-plus Cities Can Reduce 61 Million Ton CO₂ Emissions: TERI

A full shift to electric vehicles in India's 44 cities with a million-plus population could save nearly INR 9.17 lakh crore in oil imports by 2035, generate over 3.7 lakh jobs, and significantly cut air pollution and slash 61 million tonnes of CO₂ emissions over five years, according to a study by The Energy and Resources Institute (TERI).

April 28, 2025. By Mrinmoy Dey

A full switch to electric vehicles (EVs) in 44 Indian cities with a population of at least 10 lakh could save India nearly INR 9.17 lakh crore (USD 106.6 billion) in oil import bills by 2035, generate over 3.7 lakh new jobs, avoid 11.5 tonnes/day of PM2.5 emissions, and reduce 61 million tonnes of CO₂ emissions over five years, stated a study by The Energy and Resources Institute (TERI).

Even the mixed EV-CNG (50:50) approach would deliver significant air quality and climate benefits, noted the TERI policy brief titled ‘Shifting Gears Towards Cleaner Air: Modernizing Urban Fleets for a Greener Future in India’s Million-Plus Cities’.

Between 2030 and 2035, conversion of all older vehicles to EVs will require the establishment of 45,203 EV charging stations and 130 new Registered Vehicle Scrapping Facilities (RVSFs) to sustainably manage phased-out vehicles. If half of the fleet is shifted towards CNG, around 2655 additional CNG stations will be needed in these 44 million plus cities costing INR 5,130 crore.

It further added that in a scenario where rooftop solar-powered EV charging supplies at least half the charging demand, will require an estimated 17.7 GW of new solar PV installations.

TERI emphasises that the transport sector is a major contributor to urban air pollution, accounting for up to 37 percent of PM2.5 concentrations in Indian cities, particularly during winter.

TERI has proposed a five-year staggered plan (2030–2035) to phase out 11.4 million older vehicles i.e. diesel vehicles over 10 years old and petrol vehicles over 15 years old in 44 Indian cities with million-plus population. The plan prioritises commercial vehicles initially, followed by private vehicles, to ensure minimal disruption while gradually modernising urban fleets.

Dr. Vibha Dhawan, Director General, TERI, explained, “The study explores two scenarios, that is, the full EV adoption and a hybrid EV-CNG transition. It assesses the impact on emissions, infrastructure, jobs, and energy use, etc. This shift isn't just about technology; it's also about jobs. It's something which India is always concerned with, the young population. We are looking at the potential to create over 3.7 lakh new jobs in electric mobility, solar power charging, and recycling.”

The study highlights that older buses are disproportionately large contributors to PM2.5 and NOx emissions. Targeted retirement of ageing buses could account for up to 80 percent of NOx and 50 percent of PM2.5 emission reductions by 2030.

Dr. Anju Goel, Associate Director, Air Quality Research, TERI, noted, “Transport emissions are among the most persistent sources of urban air pollution. This policy brief outlines a practical, evidence-based path to addressing this challenge through cleaner fleets and better infrastructure. The findings reinforce the need for an integrated approach that prioritizes air quality improvement while aligning with India’s development and climate goals.”

TERI’s policy brief aligns with India's broader National Clean Air Programme (NCAP) and supports the country’s vision of achieving 30 percent EV penetration and 500 GW of renewable energy capacity by 2030. The recommendations also call for strong policy support through incentives, tax breaks, mandatory scrappage policies, and rapid deployment of EV and CNG infrastructure.

By strategically phasing out older vehicles and investing in clean mobility infrastructure, India can significantly improve urban air quality, boost green jobs, and contribute meaningfully to global climate goals, the policy brief noted.
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