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TrueNorth Capital

28th Jul 2025 · SEBI-Registered Analyst

Niti Aayog Steps in amidst EV vs Hybrid Debate

Niti Aayog has launched a critical study to evaluate the complete lifecycle emissions of electric vehicles (EVs), hybrids, and conventional fuel vehicles. This initiative aims to definitively identify the cleanest automotive technology amidst an ongoing debate among automakers regarding incentives. The study, expected to conclude in the coming months, was prompted by conflicting research, including an IIT Kanpur study suggesting EVs might have a larger overall carbon footprint when manufacturing, usage (especially given coal-fired power for charging), and recycling are considered. This challenges the common perception that EVs are unequivocally "zero-emission." A "green tussle" has emerged, with manufacturers like

MARUTI
and Toyota advocating for hybrid incentives, while
TATAMOTORS
and
M&M
argue for EV-exclusive benefits. The Niti Aayog study will conduct a comprehensive Life Cycle Analysis (LCA), encompassing all vehicle types (two, three, and four-wheelers, public/cargo transport) and fuel powertrains. The Union environment ministry is actively involved, engaging stakeholders. States exhibit varied stances; while the Centre maintains technology neutrality, some states, like Chhattisgarh, are solely backing EVs by removing hybrid incentives. Delhi had considered equal incentives but deferred its policy enforcement. Experts highlight that LCA results can vary significantly based on vehicle use cases and geographical location, emphasizing the need for robust, primary data collection, including site visits to manufacturing facilities, to ensure accurate findings.

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