The Energy and Resources Institute (TERI) has unveiled a new policy brief titled “Shifting Gears Towards Cleaner Air: Modernizing Urban Fleets for a Greener Future in India’s Million-Plus Cities.” The study provides a strategic framework for reducing urban air pollution by transitioning to cleaner vehicle alternatives such as electric vehicles (EVs) and compressed natural gas (CNG) across 44 of India’s largest cities.
The brief presents two transition pathways—full electrification and a hybrid EV-CNG approach—analyzing their potential impacts on emissions, fuel savings, infrastructure, and job creation. It offers critical insights for policymakers at both the national and municipal levels on modernizing urban fleets to address air quality challenges.
Dr Vibha Dhawan, Director General, TERI, stated, “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.”
According to the findings, a 50:50 EV-CNG transition could cut PM2.5 emissions by 11 tonnes per day (t/d), while a complete EV shift could reduce emissions by 11.5 t/d and save Rs. 9.17 lakh crore (USD 106.6 billion) in oil imports by 2035. Additionally, more than 3.7 lakh jobs could be generated in emerging sectors like electric mobility and renewable energy.
The study emphasizes the urgent need to retire older diesel buses, which disproportionately contribute to urban pollution. It recommends setting operational limits for these vehicles and encouraging the adoption of zero-emission alternatives to improve public health outcomes.
Dr Anju Goel, Associate Director, Air Quality Research at TERI, added, “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.”
The policy brief supports the objectives of India’s National Clean Air Programme (NCAP), which encompasses 130 cities in developing and executing Clean Air Action Plans. The transport sector has consistently been identified as a major source of emissions under this initiative.
TERI’s recommendations call for coordinated policy planning, robust infrastructure investment—including 45,000 EV charging stations and 130 scrapping facilities by 2035—and increased financial and regulatory support to achieve a cleaner, more inclusive urban transport system that fosters both environmental and economic benefits.
