Written by PPL Newsroom• October 1, 2026• 8:52 am• Science

TERI study: CNG has lower lifecycle burden than EVs on India’s coal-heavy grid

The Energy and Resources Institute’s multi-fuel assessment finds EVs lead for two- and three-wheelers, while CNG scores better for cars, taxis and buses.

A new study by The Energy and Resources Institute (TERI), released in New Delhi on 30 September, finds that compressed natural gas (CNG) currently has a lower overall lifecycle environmental burden than electric vehicles across most vehicle categories. The main reason is the country’s coal-dependent electricity mix. The report also finds that no single fuel suits every kind of vehicle.

What the study measured

The report looks beyond what comes out of the exhaust. Its life-cycle analysis covers fuel production, electricity generation, vehicle manufacturing, operation and end-of-life impacts. It uses indicators such as global warming potential, particulate matter, human toxicity, resource consumption and waste generation.

In practical terms, an electric car has no tailpipe, but the power used to charge it and the energy used to make its battery still carry emissions. TERI said EVs do well on operational air pollutants. It added that their lifecycle result is sensitive to the electricity mix, which is at present predominantly coal-dependent, and to battery manufacturing.

The scope is broad. The team examined petrol, diesel, CNG, electricity and LNG across six vehicle categories. It covered current conditions and scenarios for 2030, 2040 and 2050, backed by a survey of 2,315 vehicle owners and drivers across ten locations.

TERI’s Ritu Mathur said at the launch: “In terms of greenhouse gas emissions, CNG is actually better than EVs, given India’s current electricity mix.”

Where EVs still lead

The study does not write off electric vehicles. TERI found that EVs currently have the lowest ownership costs for two-wheelers and three-wheelers, helped by lower running costs and high utilisation. That cost advantage becomes less pronounced as vehicles get larger.

CNG records low lifecycle costs for passenger cars, taxis, buses and heavy-duty trucks, while LNG looks economically attractive against diesel for long-haul freight. Diesel options consistently perform less favourably in the life-cycle and air-pollution assessments.

What this means for India

India is pushing electric mobility to cut crude oil imports. Under the PM E-DRIVE scheme the government has offered incentives for EV adoption, and Rs 2,000 crore has been allocated for public charging stations. TERI’s findings suggest the climate payoff from EVs depends on how fast the grid cleans up. The report says decarbonising electricity, strengthening battery recycling and improving material recovery will be essential to get the full benefit of electrification. Two- and three-wheelers look like the clearest early wins.

What happens next

The report expects the balance to shift over time. It projects that electric cars will strengthen their position as charging expands, battery technology improves and the electricity mix gets cleaner. Until then, CNG is expected to remain an important complementary fuel rather than being displaced immediately.

For heavy transport, the report sets out a split pathway. CNG is expected to stay relevant for regional freight and LNG could gain importance in long-haul transport. Battery-electric trucks are expected to suit select applications under the conditions assessed.

Mathur summed up the broader message: India’s ideal fuel mix is segmented by vehicle type and scenario, rather than one fuel for all uses. The conclusions rest on TERI’s own multi-criteria framework. The full report is the place to check the indicator weights and assumptions behind the rankings.