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Indian auto sector emissions could be cut drastically

Gulf Today

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July 30, 2025

A new study released by India’s Council on Energy, Environment and Water (CEEW) has said that India’s automobile industry — the third-largest in the world — could cut its manufacturing emissions by as much as 878 by 2050 through a shift to green electricity and low-carbon steel.

- Meena Janardhan

According to a CEEW press release, the study comes as several leading automakers — such as Mahindra & Mahindra, Tata Motors, TVS Motors, Ford, BMW, Mercedes-Benz, and Toyota — have, over the past two years, ramped up electric and hybrid vehicle production while simultaneously setting ambitious emission reduction targets.

These automakers have also committed to the Science-Based Targets initiative (SBTI), aligning with global definitions of net-zero (NZ) that require full value-chain decarbonization by 2050. For large Indian auto manufacturers, cleaning up supply chains will not just lower emissions; it will enhance long-term cost competitiveness and position them as preferred international suppliers.

The Executive Summary of the study says as the world moves towards NZ emissions, a transition is expected across all economic sectors. For the automobile sector, this would lead to a higher demand for low-carbon vehicles. Currently, about 65-80 of a vehicle's emissions come from its use phase. Electrification is a major step toward reducing these emissions, while hybrid vehicles are also being explored as a bridge in the short to medium term. This, in turn, means that there will be major shift in the type of vehicles being manufactured.

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