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Policy● Neutral for Indian equities
CAFE-III could push carmakers towards cheaper EVs, costlier ICE vehicles
The brief
- CAFE-III could give battery EV sales threefold weightage, encouraging affordable electric models
- Carmakers may price some higher-emission petrol and diesel vehicles higher
- The proposed norms could reshape costs and demand for Indian automakers, including EV makers
- Major car rivals are teaming up to solve the biggest EV roadblock: Reliable charging
- Mint Explainer: The catch behind BaaS-powered EVs with lower upfront costs
- CAFE-III gives auto industry investment clarity, supports cleaner technology adoption: Industry Experts
- CAFE-3 is here: Why more EVs, range-extenders and hybrids could hit India’s roads
- Range Rover Sport Electric bookings open in India, price due next year
India’s CAFE-III fuel-efficiency norms
CAFE-III norms take effect in April 2027 and tighten the passenger-vehicle CO₂ target by 16.7% to 78.9 g/km by FY32, without separate small-car relief. Battery and range-extended EVs receive a threefold volume multiplier; plug-in hybrids receive 2.5 times.
Wednesday, 30 September
- CAFE-III could push carmakers towards cheaper EVs, costlier ICE vehicles