Union Minister Nitin Gadkari has confirmed that the Indian government will re-evaluate the proposed Corporate Average Fuel Efficiency (CAFE) III norms within the next two weeks. This review signals a potential shift in how electric vehicles (EVs) and flex-fuel vehicles are treated under the upcoming regulations, possibly granting them comparable status.
CAFE III Norms Under Scrutiny
The announcement by Minister Gadkari on Wednesday, April 21, 2026, indicates that feedback from various stakeholders is being considered for the CAFE III framework. Currently, electric vehicles benefit from a significant advantage, often treated as zero-emission vehicles in compliance calculations. The proposed changes suggest a move towards a more technology-neutral approach to emission standards.
Sources close to the discussions suggest that reassessing EV treatment under CAFE calculations has been a high-level government priority. This re-evaluation could significantly impact the automotive industry, compelling manufacturers to adjust their product strategies to balance electrification with other cleaner fuel pathways.
Push for Ethanol Blends
In conjunction with the CAFE III review, Minister Gadkari reiterated the government's strong commitment to ethanol-based mobility. He advocated for a rapid transition to higher ethanol blends, specifically E85 and E100, emphasizing their importance in reducing India's reliance on fossil fuels and bolstering the agricultural economy.
This broader recalibration of India’s fuel efficiency norms aims to harmonise policy across different low-emission technologies, including electric, flex-fuel, and other alternative fuel vehicles. Any revisions will undoubtedly influence automakers' investment and production decisions for the coming years.