Delay in finalising fuel efficiency norms a policy failure: Amitabh Kant

“The government showed how bulk procurement brought down LED bulb prices. We must replicate that for EVs,” Kant said.

Former NITI Aayog CEO and G20 Sherpa Amitabh Kant on Tuesday unveiled a five-point roadmap to fast-track India’s clean transport transition, warning that dithering over fuel efficiency standards is undermining both climate goals and industrial competitiveness.

The Corporate Average Fuel Efficiency (CAFE) III norms, scheduled to take effect in 2032, remain pending after draft rules were floated in June 2024. (HT Archive)

Speaking at the Indian Clean Transportation Summit on Tuesday, Kant proposed full electrification of two- and three-wheelers in 10 major cities by 2030, phasing out or retrofitting old vehicles within two years, mandating zero-emission fleets for taxis, autos and delivery services, bulk procurement of EVs to slash costs, and rapid expansion of gigafactories and charging infrastructure.

“The government showed how bulk procurement brought down LED bulb prices. We must replicate that for EVs,” he said.

But he warned that without decisive action on efficiency rules, such measures will falter.

The Corporate Average Fuel Efficiency (CAFE) III norms, scheduled to take effect in 2032, remain pending after draft rules were floated in June 2024. Kant called the delay a “policy failure” that could lock India into polluting technologies for decades. “Our CAFE norms remain trapped in outdated bureaucratic processes. Without updated standards, unchecked emissions will rise, innovation will stall, and India’s auto industry will remain uncompetitive,” he cautioned.

Kant urged the government to immediately notify the updated CAFE norms and finalise heavy-duty vehicle efficiency standards, which he termed “foundational pillars” for India’s green mobility strategy. “Weak-hearted administrative political leadership will not be adequate. India must move fast if it wants to be a global hub for green mobility,” he said.

Linking fuel rules to India’s broader EV ambitions, he pointed out that transport is “the biggest determinant of India’s climate future,” accounting for a significant share of CO2 emissions. Globally, nearly 20 million EVs were sold in 2024, led by China at 60%. India’s share, however, was just 1%.

Kant described clean transport as a $200 billion opportunity capable of generating millions of jobs. But he warned that unless the government shows political will to retire polluting vehicles and scale up battery manufacturing, India risks missing the chance to lead. “The time for incremental action is over,” he said.

The two-day summit, organised by ICCT with Norway as partner country and supported by the Union ministry of heavy industries, brought together policymakers, industry leaders and experts. Hindustan Times was the media partner.