Kant criticises CAFE-III’s 11% electric-car target by 2032
Amitabh Kant criticised India’s CAFE-III norms on September 30, 2026, questioning the 11% electric-car target by 2032. The rules tighten fleet fuel-efficiency requirements for passenger vehicles sold in India, while automakers welcomed their technology-neutral approach.
Read the source at MoneycontrolNewer Ministry of Power signal · — may update this storyCAFE-3 norms drop small-car concession, add tradable credits from April 2027
The numbers
| Current financial year EV sales share: | close to 8% |
|---|---|
| CAFE-III effective date: | April 1, 2027 |
| CAFE-III end date: | March 31, 2032 |
| Fuel-efficiency improvement over five years: | about 16.7% |
Why it matters to operators and investors
The modest EV target tempers the regulation-led growth case for EV-focused brands, while technology-neutral compliance gives diversified automakers more flexibility.
What to watch next
- Published CAFE-III rules retaining or revising the 11% electric-car target
- Formal proposals for a higher EV target
- Automaker announcements allocating investment across powertrain technologies
- Fleet fuel-consumption disclosures showing progress toward the lower benchmark
The counter-case
The headline may conflate an assumed EV share with a binding sales target. Technology-neutral efficiency rules need not cap EV adoption, and a modest regulatory requirement alone does not establish weaker EV demand or investment. The direct retail impact is also uncertain given the April 2027 start.