The Indian government is preparing to introduce significant changes to the country’s electric vehicle (EV) framework. The move aimed at reshaping the future of sustainable transportation. Under the proposed regulations, electric cars may no longer be classified as completely ‘zero-emission’ vehicles for the purposes of fuel-efficiency standards, but will rather measure the electricity consumed by EVs and convert it into petrol-equivalent emissions, effectively treating energy consumption as a core component of efficiency.
The proposal comes as part of India’s ongoing Corporate Average Fuel Efficiency (CAFE) reforms, with the aim of curbing overall carbon emissions from road transport. Manufacturers will be required to disclose the energy consumption of their EV models in kilowatt-hours per 100 kilometres. This data will then be translated into a petrolequivalent figure, allowing regulators to calculate emissions associated with electricity use.
While electric vehicles do not produce tailpipe emissions, their dependence on electricity — much of which in India is still derived from fossil fuels — means that high energy consumption can indirectly contribute to carbon emissions. Industry experts say the move is intended to encourage the development of longerrange, energy-efficient EVs.
A senior official familiar with the draft rules said the new regulation would push automakers to prioritise vehicles that travel farther on less energy. “It’s no longer just about zero emissions at the tailpipe; it’s about the full energy footprint of the car,” the official said, adding that the focus on energy efficiency was particularly critical in India, where coal remains the dominant source of electricity.
In the current financial year, coal-based power generation accounted for roughly 1,056 billion units of electricity, compared with 137.5 billion units from solar and 94.8 billion units from wind. Reducing the electricity needed per kilometre could significantly lower the overall carbon impact of the rapidly expanding EV market.
Currently, automakers earn “super credits” for producing electric vehicles, which can offset emissions from conventional petrol and diesel cars even if EV sales remain low. Critics argue that this system has weakened the original intent of fuel efficiency regulations, allowing manufacturers to rely on EV production to mask inefficiencies in internal combustion engine (ICE) vehicles.
The new framework is designed to close this loophole, ensuring that all vehicles meet stricter efficiency standards. Under the upcoming CAFE-3 norms, EVs and range-extender hybrids may earn three super credits each while petrol and diesel vehicles earn one credit apiece.
