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Time of India
24-07-2025
- Automotive
- Time of India
Not just electric: Auto sector needs cleaner steel & power to really put the brakes on emissions, says study
India's automobile sector—the third-largest in the world—could slash its manufacturing-related emissions by a staggering 87% by 2050, not just by building more electric vehicles (EVs), but by cleaning up how all vehicles—ICEs, hybrids, and EVs—are made. That's the central finding of a new report released Wednesday by the Council on Energy, Environment and Water (CEEW), which stresses that green electricity, low-carbon steel, and cleaner supply chains—not just EVs—are essential to decarbonising the industry. In recent years, top automakers such as Tata Motors , Mahindra & Mahindra, TVS Motors , Ford, BMW, Mercedes-Benz, and Toyota have set ambitious emission reduction targets and joined the Science-Based Targets initiative (SBTi). Many have expanded electric and hybrid offerings—but the study urges the sector to go further by addressing Scope 1, 2, and 3 emissions, including those from suppliers. 'To lead in a low-carbon global economy, we must decarbonise not just the vehicles we drive, but the industrial processes that build them,' said Dr Arunabha Ghosh, CEO of CEEW. 'Automakers must clean up what powers their factories and how suppliers produce critical materials like steel and rubber.' The Delhi-based think tank's study shows that while production could quadruple to 96 million vehicles by 2050, emissions from manufacturing can be capped—or even dramatically cut—if the sector shifts to 100% green electricity, adopts hydrogen-based and scrap-intensive steelmaking, and makes low-carbon procurement the norm. Today, Scope 3 emissions—mostly from materials like coal-heavy steel and rubber—account for 83% of the industry's carbon footprint in India. Simply electrifying vehicles without addressing these upstream emissions will leave most of the climate problem intact. Hybrids are a temporary bridge CEEW also modelled a 'high-hybrid' scenario, where hybrids dominate before EVs become widespread. While this reduces some energy demand, emissions remain higher than a direct EV transition due to continued combustion engine use. 'Hybrid vehicles may offer short-term efficiency gains, but they're not a substitute for a zero-carbon mobility future,' the report notes. Green manufacturing: Real game changer The report urges OEMs to treat green manufacturing as a strategic lever—not just for climate goals, but for long-term competitiveness. With global supply chains tightening sustainability standards, Indian manufacturers who decarbonise early will have a distinct edge. 'Indian automakers must secure green steel, power factories with renewables, and demand cleaner inputs from suppliers,' said Dr Vaibhav Chaturvedi, Senior Fellow at CEEW. 'Without this, EVs alone won't be enough to meet net-zero goals.' The study calls for a two-pronged strategy: accelerate EV adoption and decarbonise the manufacturing value chain. If done right, it says, the Indian auto sector could become a 'force multiplier' in the country's broader transition to net-zero.
Time of India
23-07-2025
- Automotive
- Time of India
Auto manufacturing emissions in India can drop 87% by 2050 through clean energy and low-carbon steel: Report
New Delhi: India's automobile industry can reduce its manufacturing-related carbon emissions by as much as 87 per cent by 2050 through a shift to green electricity and low-carbon steel, according to a study released by the Council on Energy , Environment and Water (CEEW). The study tracks the emissions profile of the world's third-largest auto industry across the full value chain and highlights the role of cleaner inputs in aligning the sector with India's net-zero targets. Using a custom version of the Global Change Analysis Model, the CEEW study projects that annual vehicle production in India could grow from 25 million in 2020 to 96 million by 2050 under a business-as-usual (BAU) trajectory. In this scenario, annual emissions from manufacturing are expected to double, reaching 64 million tonnes of CO₂, even as emissions intensity per vehicle declines. The study notes that Scope 3 emissions, which include upstream supply chain emissions from materials such as steel and rubber, currently account for more than 83 per cent of the sector's overall emissions. Scope 1 and 2 emissions, which come from direct factory operations and electricity use respectively, contribute the remaining share. Dr Arunabha Ghosh, CEO, CEEW, said, 'India's auto industry stands at a turning point. To lead in a low-carbon global economy, we must decarbonise not just the vehicles we drive but the industrial processes that build them. Automakers must clean up how their vehicles are made, what powers their factories, and how their suppliers produce critical inputs like steel and rubber.' If original equipment manufacturers (OEMs) and their suppliers were to align with net-zero by 2050, emissions from the sector could be reduced to just 9 million tonnes of CO₂ annually, down from the projected 64 MtCO₂ under BAU—a reduction of 87 per cent. This would require a shift to 100 per cent green electricity and increasing the share of hydrogen-based energy in steel production to 56 per cent. Coal's share in steelmaking would have to fall below 10 per cent, while scrap-based steel production would need to rise to 48 per cent. Dr Vaibhav Chaturvedi, Senior Fellow, CEEW, said, 'To align India's automobile sector—central to GDP, jobs, and industrial growth—with a net-zero future, we must go beyond electrifying vehicles. We must decarbonise manufacturing itself. Leading OEMs are already making corporate decisions to stay ahead by decarbonising their operations and supply chains.' The study also examines a high-hybrid scenario, where hybrid vehicles dominate initially before EVs take off. While this reduces component suppliers' energy demand by 7 per cent, overall emissions remain slightly higher than in a direct shift to EVs due to continued use of combustion engines. The study recommends a dual approach to achieve net-zero alignment by 2050: accelerate EV adoption and decarbonise the entire manufacturing chain. Since 65–80 per cent of a vehicle's lifetime emissions stem from its use phase, electrification remains the most effective lever to cut total emissions, provided it is coupled with clean manufacturing practices.
Time of India
23-07-2025
- Automotive
- Time of India
Auto manufacturing emissions in India can drop 87% by 2050 through clean energy and low-carbon steel: Report
India's automobile industry can reduce its manufacturing-related carbon emissions by as much as 87 per cent by 2050 through a shift to green electricity and low-carbon steel, according to a study released by the Council on Energy , Environment and Water (CEEW). The study tracks the emissions profile of the world's third-largest auto industry across the full value chain and highlights the role of cleaner inputs in aligning the sector with India's net-zero targets. Using a custom version of the Global Change Analysis Model, the CEEW study projects that annual vehicle production in India could grow from 25 million in 2020 to 96 million by 2050 under a business-as-usual (BAU) trajectory. In this scenario, annual emissions from manufacturing are expected to double, reaching 64 million tonnes of CO₂, even as emissions intensity per vehicle declines. The study notes that Scope 3 emissions, which include upstream supply chain emissions from materials such as steel and rubber, currently account for more than 83 per cent of the sector's overall emissions. Scope 1 and 2 emissions, which come from direct factory operations and electricity use respectively, contribute the remaining share. Dr Arunabha Ghosh , CEO, CEEW, said, 'India's auto industry stands at a turning point. To lead in a low-carbon global economy, we must decarbonise not just the vehicles we drive but the industrial processes that build them. Automakers must clean up how their vehicles are made, what powers their factories, and how their suppliers produce critical inputs like steel and rubber.' If original equipment manufacturers (OEMs) and their suppliers were to align with net-zero by 2050, emissions from the sector could be reduced to just 9 million tonnes of CO₂ annually, down from the projected 64 MtCO₂ under BAU—a reduction of 87 per cent. This would require a shift to 100 per cent green electricity and increasing the share of hydrogen-based energy in steel production to 56 per cent. Coal's share in steelmaking would have to fall below 10 per cent, while scrap-based steel production would need to rise to 48 per cent. Dr Vaibhav Chaturvedi , Senior Fellow, CEEW, said, 'To align India's automobile sector—central to GDP, jobs, and industrial growth—with a net-zero future, we must go beyond electrifying vehicles. We must decarbonise manufacturing itself. Leading OEMs are already making corporate decisions to stay ahead by decarbonising their operations and supply chains.' The study also examines a high-hybrid scenario, where hybrid vehicles dominate initially before EVs take off. While this reduces component suppliers' energy demand by 7 per cent, overall emissions remain slightly higher than in a direct shift to EVs due to continued use of combustion engines. The study recommends a dual approach to achieve net-zero alignment by 2050: accelerate EV adoption and decarbonise the entire manufacturing chain. Since 65–80 per cent of a vehicle's lifetime emissions stem from its use phase, electrification remains the most effective lever to cut total emissions, provided it is coupled with clean manufacturing practices.
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Business Standard
23-07-2025
- Automotive
- Business Standard
Switch to green power, steel to cut India's auto sector emissions: CEEW
India's automobile industry—the third-largest in the world—could cut its manufacturing emissions by as much as 87 per cent by 2050 through a shift to green electricity and low-carbon steel, according to a new independent study released on Wednesday by the Council on Energy, Environment and Water (CEEW). 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 that require full value-chain decarbonisation 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. While many of these targets focus on direct factory emissions (Scope 1 and 2) and downstream use-phase emissions, upstream supply chain emissions remain largely overlooked, despite contributing the majority of the sector's carbon footprint. The CEEW study tracks emissions across three scopes: direct emissions from vehicle manufacturing (Scope 1), indirect emissions from electricity use (Scope 2), and upstream supply chain emissions (Scope 3). Scope 3 emissions currently make up over 83 per cent of the auto industry's emissions in India, largely due to the use of coal-intensive steel and rubber in vehicle manufacturing. 'India's auto industry stands at a turning point. To lead in a low-carbon global economy, we must decarbonise not just the vehicles we drive but the industrial processes that build them. Automakers must clean up how their vehicles are made, what powers their factories, and how their suppliers produce critical inputs like steel and rubber. This is not new—promisingly, most major manufacturers in India are already thinking about these shifts,' said Arunabha Ghosh, chief executive officer, CEEW. 'Now, the push must be to create demand for green materials at scale, lower costs, and deploy cleaner technologies rapidly. The auto sector can emerge as a force multiplier for economy-wide net-zero transitions—but only through collective foresight, investment and innovation,' he added. The CEEW study uses a custom version of the Global Change Analysis Model to project emissions from India's vehicle manufacturing sector under various pathways. It finds that if current business-as-usual (BAU) trends continue, annual vehicle production could rise nearly four-fold—from 25 million units in 2020 to 96 million by 2050. Emissions, however, would only double, reaching 64 million tonnes of CO₂, suggesting a steady decline in emissions per vehicle. Still, the absolute rise in emissions underscores the need for accelerated action. Steel alone would remain the largest source of supply chain emissions, with suppliers expected to rely heavily on coal in this business-as-usual scenario. The study estimates that sourcing low-carbon steel could reduce emissions by nearly 38 million tonnes by 2050. If both OEMs and their suppliers were to aim for net-zero by 2050, annual emissions could fall from the projected 64 MtCO₂ (BAU) to just 9 MtCO₂—an 87 per cent reduction. This would require OEMs to shift to 100 per cent green electricity—sourced through power purchase agreements (PPAs), renewable energy certificates (RECs), or captive solar—and steel suppliers to use 56 per cent hydrogen-based energy, reducing coal's share to under 10 per cent. In addition, increasing scrap-based steel production to 48 per cent by 2050 would significantly reduce emissions and resource intensity. The CEEW study also highlights that rubber suppliers must transition to green electricity to clean up Scope 2 emissions. 'To align India's automobile sector—central to GDP, jobs, and industrial growth—with a net-zero future, we must go beyond electrifying vehicles. We must decarbonise manufacturing itself. Leading OEMs are already making corporate decisions to stay ahead by decarbonising their operations and supply chains. What's needed now is strong procurement intent, especially through advanced market commitments to secure green steel and other low-carbon materials,' said Vaibhav Chaturvedi, Senior Fellow, CEEW. 'The policy landscape may be evolving, but major markets are still pushing hard on green through corporate and investor action. Indian automakers must treat clean manufacturing as a strategic lever—not just for cost control, but to stay competitive in global supply chains,' Chaturvedi added. The CEEW study also examines a high-hybrid scenario, where hybrids dominate in the near term before EVs take off. While this reduces energy demand among component suppliers by 7 per cent, emissions remain slightly higher than in a BAU shift to EVs due to continued reliance on combustion engines. Ultimately, hybrid vehicles are at best a bridge and will need to be reduced to make way for zero-carbon vehicles. To align the automobile sector with a 2050 net-zero pathway, the CEEW study recommends a two-pronged strategy: accelerate the transition to electric vehicles and decarbonise the full manufacturing value chain. Since 65–80 per cent of a vehicle's lifetime emissions come from its use phase, shifting to EVs remains the most effective way to cut end-use emissions. But deep reductions will only be possible if EVs are manufactured using clean energy and low-carbon materials. This requires coordinated action across OEMs and suppliers—supported by long-term procurement commitments and policy signals that encourage investments.
Time of India
23-07-2025
- Automotive
- Time of India
EV push by Indian auto giants could slash manufacturing emissions by 87% by 2050: CEEW Study
India's top automakers are ramping up electric and hybrid vehicle production—and a new study suggests this shift could dramatically cut the industry's climate impact. According to a report released by the Council on Energy, Environment and Water (CEEW) on Wednesday, India's automobile sector could slash its manufacturing emissions by as much as 87% by 2050, if it aligns this EV transition with a move to green electricity and low-carbon steel. Explore courses from Top Institutes in Please select course: Select a Course Category Management Finance Product Management Project Management Healthcare Public Policy MCA Others Data Science Data Analytics Design Thinking Degree Leadership Artificial Intelligence Cybersecurity healthcare MBA Technology others Data Science Digital Marketing PGDM CXO Operations Management Skills you'll gain: Duration: 9 Months IIM Calcutta CERT-IIMC APSPM India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIM Kozhikode CERT-IIMK General Management Programme India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK GMPBE India Starts on undefined Get Details In recent years, companies like Tata Motors , Mahindra & Mahindra, TVS Motors , Ford, BMW, Mercedes-Benz, and Toyota have significantly expanded their electric and hybrid offerings, while also setting ambitious net-zero targets. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The CEEW study points to this momentum as a pivotal opportunity to reshape supply chains and drive deep decarbonisation across one of the world's largest auto industries. 'India's auto industry stands at a turning point. To lead in a low-carbon global economy, we must decarbonise not just the vehicles we drive but the industrial processes that build them. Now, the push must be to create demand for green materials at scale, lower costs, and deploy cleaner technologies rapidly. The auto sector can emerge as a force multiplier for economy-wide net-zero transitions—but only through collective foresight, investment and innovation,' said Dr Arunabha Ghosh, CEO, CEEW. Live Events Hybrids offer limited interim gains The study by the Delhip-based think tank also explored a 'high-hybrid' scenario, where hybrids dominate initially before EVs become mainstream. While this path could reduce component-level energy demand by around 7%, the report warns it would result in higher emissions than a direct EV transition, due to the continued use of combustion engines. 'Hybrid vehicles may provide short-term efficiency gains, but they are not a substitute for a zero-carbon mobility future,' CEEW researchers noted. 'Eventually, their share must shrink to make way for fully electric vehicles.' The report positions India's auto industry as a potential 'force multiplier' in the country's wider net-zero transition—but only if companies commit to greening their supply chains, scaling clean energy adoption, and accelerating EV integration across their production lines.
