India’s Electric Vehicle Growth and CAFE Norms

Source: The post India’s Electric Vehicle Growth and CAFE Norms has been created, based on the article “Fuel efficiency norms could accelerate clean mobility” published in “Live mint” on 23rd December 2024

UPSC Syllabus Topic: GS Paper3- Environment

Context: The article highlights India’s electric vehicle growth, supported by government policies and investments. It emphasizes the importance of CAFE norms in reducing emissions, encouraging EV adoption, and aligning with global standards for a sustainable, low-carbon future and economic growth.

What is India’s Current Status in Electric Vehicle Adoption?

1. India has reached a milestone with over 5 million electric vehicles (EVs) on the road by the end of 2024.
2. The percentage of EVs compared to total vehicles has increased from 0.7% in 2020 to 6.3% in 2024.
3. The breakdown includes 2.6 million two-wheelers, 2 million three-wheelers, 300,000 four-wheelers, and 10,000 buses.
4. These vehicles have helped reduce carbon emissions by approximately 10 million tonnes.

How is the Government Supporting EV Growth?

1. The Indian government, under Prime Minister Narendra Modi, has invested $15.1 billion in electric mobility through various schemes, enhancing the country’s role as a significant player in the EV market.
2. Additionally, startups in this sector have received around $6.4 billion in private investments.

What are CAFE Norms and How Do They Impact EV Adoption?

1. Corporate Average Fuel Efficiency (CAFE) norms are regulations aimed at reducing vehicle emissions.
2. India plans to implement stricter norms, CAFE III and CAFE IV, which set limits of 91.7gm and 70gm of CO2 per kilometer, respectively.
3. These norms encourage automakers to increase their production of EVs, which are treated favorably under these regulations through ‘super credits’.

4.CAFE norms help reduce fuel consumption and emissions, aligning India with international standards.

5. They also encourage automakers to invest in EV technology, leading to reduced costs and increased production efficiency. This, in turn, supports the broader adoption of EVs.

For detailed information on Corporate Average Fuel Efficiency (CAFE) norms read this article here

How Will CAFE Norms Benefit India’s Economy and Environment?

1. Emission Reduction: CAFE norms set stricter CO2 limits, reducing emissions to 91.7gm/km by 2027 and 70gm/km by 2032, supporting decarbonization goals.
2. Encouraging EV Adoption: EVs receive “super credits,” motivating automakers to produce more. Over 5 million EVs already reduce 10 million tonnes of carbon emissions.
3. Global Alignment: Switching to international testing standards improves emission data accuracy.
4. Economic Growth: CAFE norms promote clean-tech investments, EV innovation, and job creation.
5. Examples of Success: The EU increased EV market share from 3% to 19% (2019–2021) with similar standards.

Question for practice:

Examine how the implementation of CAFE norms contributes to India’s electric vehicle adoption, economic growth, and environmental sustainability.