EVs may lose edge as govt weighs parity with flex-fuel cars

EVs may lose edge as govt weighs parity with flex-fuel cars

Nitin Gadkari reiterated the government’s push towards ethanol-based mobility, calling for a transition to higher ethanol blends such as E85 and E100. “We should move towards E85 and E100,” he said 

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The CAFE III norms will be reviewed in 15 daysThe CAFE III norms will be reviewed in 15 days
Chetan Bhutani
  • Apr 21, 2026,
  • Updated Apr 21, 2026 7:16 PM IST

Union Minister Nitin Gadkari on Wednesday said the government will review the proposed Corporate Average Fuel Efficiency (CAFE) III norms within the next 15 days, even as he indicated that electric vehicles and flex-fuel vehicles could see comparable treatment under the upcoming framework.

“The CAFE III norms will be reviewed in 15 days,” Gadkari said, signalling that the government is taking into account feedback from stakeholders.

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He added that there should not be a significant distinction between electric and flex-fuel vehicles under the new norms, suggesting a shift towards a more technology-neutral approach to emission compliance.

Must Read: BT Explainer: India's safest cars by BNCAP ratings

The remarks come amid ongoing policy discussions, with sources indicating that the proposal to reassess how electric vehicles are treated under CAFE calculations has been reviewed at the highest levels of government. The move could potentially narrow the compliance advantage that EVs currently enjoy, where they are treated as zero-emission vehicles.

Gadkari also reiterated the government’s push towards ethanol-based mobility, calling for a transition to higher ethanol blends such as E85 and E100. “We should move towards E85 and E100,” he said, underlining the importance of alternative fuels in reducing dependence on fossil fuels and supporting the agricultural economy.

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Don't Miss: Why buying an EV may not be as smooth as it looks

The proposed changes are part of a broader recalibration of India’s fuel efficiency norms as policymakers seek to balance electrification with other cleaner fuel pathways. Any revision in the framework could influence automakers’ product strategies, with a greater focus on a mix of electric, flex-fuel and other low-emission technologies.

Union Minister Nitin Gadkari on Wednesday said the government will review the proposed Corporate Average Fuel Efficiency (CAFE) III norms within the next 15 days, even as he indicated that electric vehicles and flex-fuel vehicles could see comparable treatment under the upcoming framework.

“The CAFE III norms will be reviewed in 15 days,” Gadkari said, signalling that the government is taking into account feedback from stakeholders.

Advertisement

He added that there should not be a significant distinction between electric and flex-fuel vehicles under the new norms, suggesting a shift towards a more technology-neutral approach to emission compliance.

Must Read: BT Explainer: India's safest cars by BNCAP ratings

The remarks come amid ongoing policy discussions, with sources indicating that the proposal to reassess how electric vehicles are treated under CAFE calculations has been reviewed at the highest levels of government. The move could potentially narrow the compliance advantage that EVs currently enjoy, where they are treated as zero-emission vehicles.

Gadkari also reiterated the government’s push towards ethanol-based mobility, calling for a transition to higher ethanol blends such as E85 and E100. “We should move towards E85 and E100,” he said, underlining the importance of alternative fuels in reducing dependence on fossil fuels and supporting the agricultural economy.

Advertisement

Don't Miss: Why buying an EV may not be as smooth as it looks

The proposed changes are part of a broader recalibration of India’s fuel efficiency norms as policymakers seek to balance electrification with other cleaner fuel pathways. Any revision in the framework could influence automakers’ product strategies, with a greater focus on a mix of electric, flex-fuel and other low-emission technologies.

ABOUT THE AUTHOR

Chetan Bhutani

Chetan Bhutani is a New Delhi-based economic policy journalist with ten years of experience in reporting and breaking stories about economic policy pertaining to India's infrastructure and financial sector, including highways, finance, railways, shipping, telecom, petroleum, and natural gas and currently works as an Associate Editor for Business Today TV. He is a journalist who works across multiple platforms and languages and offers in-depth coverage of the auto industry, regulations, new products, and reviews. Also, he has extensively reported about the actions taken by investigative authorities in relation to corporate and bank frauds as well as significant insolvency cases. Bhutani keeps a tight eye on all aspects of the government's public policies, from their creation to their implementation. In addition to his job, Chetan enjoys scheduling official appointments, travelling, going on road trips, playing cricket, and squash. Also, he is passionate about addressing climate change and road safety. He is a public policy enthusiast and has a master's degree in Public Administration.

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