CAFE-III norms may drive carmakers to cheaper EVs and costlier ICE vehicles

Business Standard · automobile

New CAFE-III emission standards could significantly influence the Indian automotive market by incentivizing the production of more affordable electric vehicles. The regulations assign a threefold sales weightage to battery EVs, encouraging manufacturers to focus on accessible models. Conversely, carmakers might increase prices for certain higher-emission petrol and diesel vehicles. This strategy would help them meet their overall emission targets under the new framework. The shift aims to accelerate the adoption of cleaner transportation options across the country.