Union Minister Nitin Gadkari confirmed on Wednesday that the government will review the proposed Corporate Average Fuel Efficiency (CAFE) III norms within the next 15 days. He indicated a potential shift towards treating electric vehicles (EVs) and flex-fuel vehicles more comparably under the upcoming framework, suggesting a move away from the significant distinction currently present.
CAFE III Norms Under Scrutiny
Gadkari's announcement signals that the government is actively considering feedback from various stakeholders regarding the CAFE III norms. Currently, electric vehicles benefit from being treated as zero-emission vehicles, giving them a compliance advantage in fuel efficiency calculations. The upcoming review could reassess this treatment, potentially narrowing that advantage.
Sources suggest that discussions to re-evaluate how EVs are factored into CAFE calculations have reached the highest levels of government, highlighting the importance of this policy recalibration.
Push for Ethanol-Based Mobility
Alongside the CAFE III review, Minister Gadkari reiterated the government's strong commitment to ethanol-based mobility. He advocated for a transition to higher ethanol blends, specifically E85 and E100, emphasizing their role in reducing India's reliance on fossil fuels and bolstering the agricultural sector.
These proposed changes are part of a broader effort to refine India's fuel efficiency regulations. Policymakers aim to strike a balance between promoting electrification and supporting other cleaner fuel alternatives. Any revisions to this framework are expected to significantly influence automakers' future product strategies, likely prompting a greater focus on a diverse mix of electric, flex-fuel, and other low-emission technologies.