Overview
- Inter‑ministerial discussions are underway, and a high‑level meeting at the PMO is reportedly set for February 25 to try to finalise the contested CAFE‑3 norms, with no decision announced yet.
- The Bureau of Energy Efficiency’s draft explores moving beyond tailpipe‑only accounting by linking vehicle energy use to India’s power‑generation mix or converting kWh/100 km into a petrol‑equivalent value.
- Reclassifying EVs would shrink the super‑credits now used to offset higher‑emission ICE models, potentially tightening fleet compliance strategies and affecting pricing plans.
- CAFE III is slated for April 1, 2027 to March 31, 2032 with an approximate fleet limit of 91.7 g/km, and reports indicate BEE favors ending small‑car derogations that manufacturers have opposed.
- Industry positions are split, with Tata Motors and Mahindra & Mahindra backing faster BEV adoption while players such as Maruti Suzuki, Honda, and Toyota have advocated a greater role for ICE and hybrids, according to InfluenceMap.