Niti Ayog, in a February 10 report, suggested clubbing BEVs along with FFVs and CBG-based vehicles under a unified “zero emission vehicle”. Automakers like Tata, M&M and JSW MG opposed the proposal
The development comes after reports of Tata Motors, Mahindra & Mahindra (M&M) and JSW MG Motor India, recently opposed to Niti Aayog’s February 10 report for suggesting clubbing of battery electric vehicles (BEVs) along with FFVs and CBG-based vehicles under a unified “zero emission vehicle”.
“The globally dominant regulatory definition of ZEV is far narrower, and the report’s inclusion of FFVs and CBG vehicles as “zero emission” would not be recognised under any major international standard. No regulatory body in the world classifies a combustion engine running on ethanol as a “zero emission vehicle” — even Brazil, the world’s largest flex-fuel market, does not use that label for FFVs,” Tata Motors said in its letter to Niti Aayog recently.
The company wrote that such a new categorisation is likely to impact investor confidence, as the report calls for segment-wise targets for ZEVs.
M&M and JSW MG Motor India had also expressed similar objections to the said report.
In Niti’s defense
Objecting to these three companies’ suggestions, ISMA, IFGE and NFCSF on March 3 wrote to Niti Aayog stating that the recent report reflects a pragmatic, technology-inclusive and India-centric approach aligned with national developmental priorities.
“Promotion of FFVs and CBG-based mobility enhances farmer incomes and strengthens the rural economy; reduces crude import dependency through domestic ethanol and biogas production, especially in the context of current geopolitical scenarios, and converts agricultural residue and organic waste into clean energy, advancing waste-to-wealth objectives,” the three industry associations said in the letter, businessline has learnt.
They also said significant investments are already underway in sugar, bioenergy and green fuel sectors.
“Importantly, the Niti Aayog report also outlines a rational, phase-wise transition pathway for India’s mobility sector beginning with phasing out highly polluting diesel vehicles and promoting cleaner alternatives such as CNG, hybrids and EVs; progressing in Phase-II to stronger integration of biofuels alongside electrification; and ultimately moving toward Phase-III adoption of true zero-emission vehicles. This calibrated and structured transition ensures environmental gains while protecting affordability, farmer livelihoods and industrial investments,” they added.
Published on March 5, 2026