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Ministry boosts CAFE-III credits for EVs and hybrids

2026-09-30 · 1 source · BusinessLine Companies

In short

The ministry issued a new CAFE-III notification. It gives a 3.0 credit multiplier to battery-electric vehicles and range-extended EVs, 2.5 to plug-in hybrids and flex-fuel strong hybrids, 1.6 to conventional strong hybrids, and 1.1 to flex-fuel ethanol vehicles.

This matters for carmakers because it changes how they can meet fuel-economy rules. The report does not say when the changes start or which companies will be affected most.

What the reporting says

The ministry issued a notification expanding CAFE-III compliance options by assigning higher volume multipliers to several vehicle types. Battery-electric vehicles and range-extended electric vehicles were given a 3.0 multiplier, plug-in hybrids and flex-fuel strong hybrids 2.5, conventional strong hybrids 1.6 and flex-fuel ethanol vehicles 1.1. The reporting does not state when the rules take effect or how automakers will adjust production plans.

Why it matters

The ministry’s CAFE-III notification changes compliance math for automakers by giving higher multipliers to battery-electric vehicles, range-extended EVs, plug-in hybrids, strong hybrids and flex-fuel ethanol vehicles. That can affect how manufacturers plan product mixes to meet norms. The report does not state the implementation date or whether any company has responded yet.

Touches: EV, Government

Sources