How India's push for easier emission rules drew backlash from global watchdogs
Global agencies fear that the Centre’s conservatism could lead to more leeway for automakers to include EVs in their portfolios than is necessary.
NEW DELHI : India's auto emissions roadmap is so conservative that it falls short of the industry's own targets for electric vehicle sales, two international agencies said.
The International Council on Clean Transportation (ICCT) and International Road Federation (IRF) have separately urged New Delhi to reconsider further concessions under India's upcoming Corporate Average Fuel-Efficiency (CAFE) norms.
This follows the industry's complaint that the draft norms—even after a revision since their introduction in 2024—are too stringent and could threaten the sector’s sustainability.
While industrywide CAFE-III compliance would raise the EV share in total car sales to 10-11%, the industry itself is targeting a significantly higher share, according to ICCT, an independent research organization advising environmental regulators on policy.
“Our internal analysis shows that the revised CAFE norms would translate into 10-11% EV sales by 2030," Amit Bhatt, managing director for India at ICCT, told Mint. “Further, according to our analysis, if we combine the voluntary commitments from original equipment manufacturers (OEMs), such as Maruti Suzuki committing to 15% EV sales by 2030, and Tata Motors' and Mahindra & Mahindra committing to 30%, we estimate around 20% EV sales by 2030," he added.
Founded in 2005, clean mobility think tank ICCT operates in India, the US, Germany, China, Brazil and other countries.
Higher targets
While Maruti Suzuki targets 15% EVs in its overall sales by FY31, Tata Motors and M&M aim for 30% by 2030, and Hyundai Motor India targets 17%.
The global agencies fear that cautious rules could grant automakers more emissions leeway than is necessary.
Geneva-based IRF, meanwhile, asked the government to consider automakers' sales projections before deciding on so-called super-credits that artificially depress average fleetwide emissions. In a 26 November letter to the Bureau of Energy Efficiency (BEE), IRF wrote that the public commitment of Tata Motors, whose managing director Shailesh Chandra is also the president of industry body Society of Indian Automobile Manufacturers (Siam), of one-third penetration of EVs by 2030 suggested that automakers do not need high super-credits for EVs.
“I have come across a public statement made by the MD of Tata Motors as well as the current president of Siam, who has projected that his company’s EV penetration may reach one third by 2030," K.K. Kapila, president (emeritus) IRF, wrote to BEE, in a letter seen by Mint. “However, the Tata request for high artificial factors in CAFE becomes totally unjustified. These projections further reinforce the point I had submitted earlier (that artificial benefits like super credits should be eliminated)." Real emission reduction requires real efforts, not regulatory shortcuts, the letter added.
The IRF, founded in 1948, works with policymakers worldwide to promote safer roads and clean mobility.
BEE, the government agency formulating efficiency norms, released draft stricter fuel emission norms on 25 September, mandating carmakers to gradually cut the average fuel consumption of the cars they sell from 3.73 litres per 100km in 2027 to 3.01 litres by 2032. Since the rules consider the average fuel consumption and tailpipe emissions across vehicles sold, companies benefit from selling more clean-fuel cars, such as EVs, CNG, and hybrids.
Super-credits
Alongside, CAFE-III draft proposes that a manufacturer may count the sale of one EV as three, and one hybrid as two. This regulatory mechanism, called super-credits, makes it easier for manufacturers to comply with the stricter norms on an average. However, in its final submission to the government in November, Siam demanded raising super-credit value for EVs to four vehicles from three, and maintain two vehicles for hybrids.
Siam and the BEE did not respond to Mint's queries on the concerns shared by the international agencies. A Tata Motors spokesperson said that “a private correspondence between the IRF and BEE is being deliberately leaked in the public domain to serve vested interests".
“On the matter of super-credits, the proposal to increase the factor for EVs to four was a unanimous suggestion from Siam, which represents the interests of all Indian automakers," the spokesperson said.
“The EV value chain represents investments running into billions of dollars across products, technology, and ecosystem development. These investments are being made in direct response to the government's call for zero-emission mobility, and nearly all OEMs are working on EVs. Suggesting that there will be no additional effort to convert customers to EV is not rooted in any observable reality in any global market," the spokesperson added.
Clean drive
Mint reported on 23 October that half of the cars in each carmaker's portfolio will be run by clean fuel by 2030, with the bulk of the contribution also coming from hybrid and CNG vehicles. Currently, Maruti Suzuki has no domestic EV sales; Tata Motors’ EVs account for about 15% of sales; M&M has 9% EV penetration, while Hyundai’s EV share is around 1%.
While international independent agencies are pointing out loose ends, Siam has been seeking relaxations in the norms since December 2024, terming them “stringent".
The ongoing discussions between the government, independent agencies, and automakers come as India finalizes the third iteration of CAFE norms, set to be implemented by April 2027.
CAFE norms, which limit fuel consumption, are used in major economies worldwide (sometimes under different names) to encourage automakers to adopt cleaner, more fuel-efficient technologies.
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