Indian government to change CAFE norms to push EV production. As a part of the new norms, the Indian government has asked automakers to make at least 2% to 3% of their cars electric every year.

According to a report by the World Economic Forum (WEF), India has the potential to become the largest EV market in the world due to tremendous push by the state and the central government through by introducing various policies and programs.

Indian government to change CAFE norms to push EV production

After introducing and implementing various EV policies in the country, the Indian government now decided to update the Corporate Average Fuel Economy (CAFE) norm. CAFE is nothing but a set of guidelines or regulations, which automakers have to follow for producing vehicles in India.

According to the new changes done in CAFE, the automobile makers will have to produce vehicles that are at least 30% fuel-efficient. As a part of the new norms, the Indian government has asked automakers to make at least 2% to 3% of their cars electric every year.

With such strict norms, the government hopes that automobile makers will reduce the production of internal combustion engines (ICE) and eventually push for electric vehicles.

The idea to change the CAFE norms is inspired by the international examples like California and thirteen states in the US – Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont and Washington which used the CAFE norm to manage their own automobile situation.

As EV production is gaining its momentum in the Indian market, private automobile biggies like Maruti Suzuki, Toyota, Hyundai and MG Motors, among others have come forth to jump into the race. Simultaneously on the other hand, certain car manufacturers like BMW and Mercedes Benz have decided to wait for the Indian EV ecosystem to develop on a full scale.

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