Corporate Average Fuel Economy(CAFE) Norms for 2022 will be made stricter by the government. This step is taken in order to make sure that India’s quest of being an electric vehicles nation in 2030. A proposal to actuate the same has been already applied by the Ministry of Road and Transport to NITI Aayog since April 1, 2017.
The CAFE Norms mandate the Automakers to manufacture cars which are 10% more fuel efficient between 2017 to 2021 and similarly 30% more efficient from 2022 onwards.
A Government official said that:
The government’s view is that with the present CAFE norms, all vehicles will run on IC engines only. If we want to have real disruption then the norms will have to be tightened further by 2022 or 23. That’s what Europe and many other countries have done. If we want to promote low emission vehicles then the current norms are not very tight.
The updated CAFE Norms will force the car and SUV manufacturers to invest more in electric and hybrid vehicle technology. Although the infrastructure to accommodate the electric vehicle charging is not yet ready.
A sudden change in the government policies is bound to produce fluctuations in the longterm plans of the auto manufacturers. The speed at which India is traveling towards the Electric vehicles is very slow. The absence of clarity in the policies and lack of supporting infrastructure have restrained many big players from taking big projects.
Meanwhile, Startups like Ather Energy, Emflux Motors, and Emotion Motors are making their way to establish themselves in the market. Everything now depends on the developments that come in near future.
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