New CAFE-3 norms represent 'huge missed opportunity': Amitabh Kant

Amitabh Kant, former chief executive of policy think tank NITI Aayog, has voiced strong disapproval of the newly unveiled CAFE-3 (Corporate Average Fuel Efficiency) norms, describing them as a significant strategic misstep for India's automotive sector.

The new regulations, which come into effect from 2027, establish fresh fuel-efficiency and carbon dioxide emission requirements for vehicle manufacturers. The framework also introduces EV super credits, a mechanism designed to incentivize automakers to transition toward electric vehicle production.

Despite these provisions, Kant contended that the norms do not sufficiently advance India's electric mobility agenda. His assessment suggests the standards maintain an overly conservative approach rather than leveraging the regulatory environment to accelerate the shift away from internal combustion engines during a critical window of technological and market transformation.

The criticism underscores ongoing debate within policy circles about whether India's automotive regulations strike the right balance between supporting traditional vehicle manufacturers and pursuing ambitious climate and environmental objectives. The CAFE-3 framework represents the latest iteration of emission standards aimed at reducing the sector's carbon footprint while managing the transition to cleaner technologies.

Industry observers and policymakers continue to assess whether the current regulatory approach positions India competitively within the global shift toward sustainable mobility solutions.