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Niti Aayog examining lifecycle emissions of EVs: Report

Under the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, Centre has allocated Rs 10,900 crore for subsidies, which came into effect on October 1, 2024, and will remain in force until March 31, 2026.

July 28, 2025 / 11:02 IST
Niti Aayog

Niti Aayog is examining the lifecycle emissions of electric, hybrid and conventional vehicles to determine which technology is the cleanest, according to a report by Mint.

The move comnes at a time when automakers have crossed swords on providing hybrids the sameincentives as pure electric vehicles (EVs). As early as February, during a meeting with the Niti Ayog Chairman BVR Subrahmanyam, Electric Vehicle (EV) makers urged that the States be asked to lift the limitation on permits for such vehicles as it is restricting the companies in selling more vehicles. The Niti Ayog Chairman reportedly told the industry leaders not to expect any more subsidies.

Under the Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, Centre has allocated Rs 10,900 crore for subsidies, which came into effect on October 1, 2024, and will remain in force until March 31, 2026.

The vehicle manufacturers reportedly said while the government can discontinue the subsidies on two/three-wheelers after the PM E-DRIVE scheme expires in 2026, the Centre should persuade State governments to lift the limitation on permits that restrict sale of vehicles.

EVs have no tailpipe emissions; however in 2023, a study by the Indian Institute of Technology, Kanpur, showed that their manufacturing, usage and scrapping emit more greenhouses gases than the same processes for hybrid or fossil fuel-bases vehicles.

The global Electric Vehicle (EV) fleet is poised to increase exponentially in what has been dubbed
as the electric mobility revolution. The push for EVs is driven by the global climate agenda
established under the Paris Agreement to reduce carbon emissions to limit global warming.

In India, EVs currently represent a small share with approximately 750,000 vehicles. The country
has set a target of 30% electric vehicle sales across all vehicle types by 2030.

Moneycontrol News
first published: Jul 28, 2025 11:02 am

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