Wed Feb 25 15:01:24 UTC 2026: ### India Debates Carbon Emission Norms for Vehicles Amid Electric Vehicle Push

The Story:

The Prime Minister’s Office (PMO) convened a meeting on Wednesday, February 25, 2026, to discuss proposed Corporate Average Fuel Efficiency (CAFE)-3 norms for passenger vehicles, scheduled to take effect from 2027. The meeting, involving officials from the Ministry of Power, Bureau of Energy Efficiency, and Ministry of Heavy Industries, did not reach a final decision, highlighting divisions between small and large car manufacturers. The proposed norms aim to encourage electric mobility, as stated by Minister for Heavy Industries H.D. Kumaraswamy.

Key Points:

  • The PMO reviewed draft CAFE-3 norms for passenger vehicles, with no final decision reached.
  • The meeting included officials from the Ministry of Power, Bureau of Energy Efficiency, and Ministry of Heavy Industries.
  • The revised draft removes the 3.0 g CO2/ km waiver for cars weighing up to 909 kg and with engine capacity not exceeding 1200 cc.
  • The emission slope has been flattened from an initial 0.002 to 0.00153 in year one, reducing annually to 0.00128 in the fifth year.
  • Over 28 lakh electric vehicles have been sold under the ₹10,900 crore PM E-DRIVE scheme as of February 2026.
  • Over 14,000 electric buses have been sanctioned across major cities under an allocation of ₹4,391 crore.
  • Electric three-wheelers have achieved nearly 32% penetration, exceeding targets.

Key Takeaways:

  • India is actively pursuing electric mobility as both a climate initiative and an industrial strategy.
  • The government is grappling with balancing the interests of different segments of the automotive industry (small vs. large car manufacturers) while setting emission standards.
  • The PM E-DRIVE scheme is showing significant progress in promoting electric vehicle adoption, particularly in the two and three-wheeler segments.
  • The revised CAFE-3 norms reflect an attempt to fine-tune emission standards, providing some relief to smaller cars while tightening restrictions on heavier vehicles.

Impact Analysis:

The implementation of CAFE-3 norms will have a substantial impact on the Indian automotive industry. The shift towards electric mobility will likely accelerate, influencing manufacturing, supply chains, and technological advancements. The success of the PM E-DRIVE scheme and the government’s commitment to electric buses indicate a long-term strategy to reduce carbon emissions in the transportation sector. The final form of the CAFE-3 norms will significantly shape the future of vehicle manufacturing and sales in India, potentially favoring electric vehicles and impacting traditional combustion engine vehicles.

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