NEW DELHI: Phasing out old vehicles in India’s biggest cities and switching entirely to electric alternatives could reduce the country’s oil bill by a staggering Rs9.17 lakh crore ($106.6 billion) by 2035, while also delivering a major boost to public health and clean energy jobs, according to a new study by The Energy and Resources Institute (TERI).
The study, focused on 44 cities with populations of over 10 lakh, estimates that replacing older vehicles with electric ones could eliminate 11.5 tonnes of PM2.5 emissions every day by 2035 and cut greenhouse gas emissions by 61 million tonnes of carbon dioxide equivalent.
This transition would also help avoid the consumption of over 51 billion litres of petrol and diesel over the next decade.
Older vehicles, particularly diesel buses, are among the top contributors to particulate pollution. TERI notes that the number of ageing vehicles in these cities is expected to surge from 49 lakh in 2024 to 75 lakh by 2030.
A phased plan to retire 1.14 crore such vehicles between 2030 and 2035 is essential, the authors argue.
“Just imposing age limits on diesel buses could halve PM2.5 and cut nitrogen oxide emissions by 80 per cent by 2030,” the report says.
The study calls for an aggressive buildout of infrastructure to support this green shift – over 45,000 public EV charging stations and 130 vehicle-scrapping facilities across the 44 cities. The shift could also generate nearly 3.7 lakh new jobs in the EV and renewables sector.
A mixed transition involving electric and CNG vehicles may be easier to execute, but it would lead to 30 per cent lower greenhouse gas reduction and far fewer jobs – around 45,000, the study notes. To support a hybrid path, 2,655 new CNG stations would be needed.
TERI’s findings reinforce the urgency of electrifying urban transport – not just to combat climate change, but also to strengthen energy security, curb public health risks, and unlock economic opportunities.
