TERI Study Calls for Multi-Fuel Approach to Balance India's Transport Sector Needs

The Energy and Resources Institute (TERI) has released a study that recommends a multi-fuel strategy for India's transport sector. The report emphasizes that no single technology or fuel can replace all others, and that each fuel has its own advantages and disadvantages.

The study evaluated petrol, diesel, compressed natural gas (CNG), electricity, and liquefied natural gas (LNG) across six vehicle categories. It found that economic considerations are the most influential factor in determining fuel suitability, accounting for 31.49% of the overall assessment weight.

Electric vehicles (EVs) have significant potential in two- and three-wheelers, particularly in high-utilization applications where lower operating and maintenance costs can offset higher upfront investments. However, challenges such as charging infrastructure, battery manufacturing, vehicle weight, critical-mineral imports, and technology maturity remain.

The report also identifies CNG as a competitive option across passenger cars, taxis, buses, and light commercial vehicles (LCVs), supported by established infrastructure, relatively low life-cycle costs, faster refueling, and operational practicality. LNG emerges as a relevant alternative for long-haul freight.