Automakers clash with NITI Aayog over India’s net-zero roadmap, as the government insists biofuels, hybrids and hydrogen must join EVs in the zero-emission mix.
NITI Aayog has reaffirmed its support for biofuels as part of India’s long-term decarbonisation pathway, rejecting calls from Tata Motors, Mahindra & Mahindra and JSW MG Motor to restrict the definition of zero-emission vehicles (ZEVs) solely to electric models.
According to The Hindu Businessline, the three automakers had opposed a February 2026 transport report, arguing that hybrids and biofuel-based vehicles should not be classified as ZEVs. They had urged the government think tank to reconsider its expanded framework.
The report defines ZEVs to include battery electric vehicles (BEVs), hydrogen-powered vehicles, ethanol-based flex-fuel vehicles (FFVs), hybrids, and compressed biogas (CBG) models.
NITI Aayog reportedly dismissed the automakers’ objections, stressing that a technology-neutral approach is essential to achieving net zero by 2070. It outlined a phased transition strategy, beginning with the elimination of diesel vehicles and greater adoption of CNG, hybrids and EVs, followed by wider deployment of biofuels through FFVs and CBG, before full-scale adoption of ZEVs across categories.
The Indian Federation of Green Energy (IFGE) welcomed the decision, commending NITI Aayog for resisting industry pressure and retaining biofuels in the national framework. In a letter to Vice-Chairman Suman Berry, IFGE said the clarification that ZEVs are defined on the basis of lifecycle emissions, rather than tailpipe emissions alone, was a scientifically robust approach.
The organisation, representing India’s bioenergy ecosystem, argued that this ensures a more comprehensive assessment of environmental impact.
IFGE’s membership spans major companies and associations, including NTPC, GAIL, Bajaj, Murugappa Group, Shree Renuka Sugars and Hero Future Energies. It said the inclusion of biofuels alongside EVs and hydrogen vehicles strengthens India’s decarbonisation strategy by diversifying technological options and aligning with domestic energy realities.
The debate highlights the tension between automakers’ preference for a narrower EV-led pathway and the government’s broader, multi-fuel vision for sustainable transport.
