EVs May Lose Zero-Emission Tag Under CAFE 3 Norms As PMO Reviews Grid Emissions

Electric vehicles in India may no longer retain their “zero-emission” status under the upcoming CAFE 3 norms, as the Prime Minister's Office reviews a proposal to factor in grid-based emissions. Under the Corporate Average Fuel Efficiency (CAFE) norms set to tighten from 2027, the debate centres on whether EVs should be treated as fully zero-emission vehicles when the electricity used to charge them largely comes from coal-powered grids. If implemented, this move could reduce the compliance advantage automakers currently enjoy by selling EVs to offset emissions from petrol and diesel vehicles. While the government argues the logic reflects real-world emissions, the shift could impact OEM strategies, EV expansion plans, and the broader momentum of India’s electric mobility transition.