EVs in India have moved on subsidies. Delhi policy shows clearer path, Pg15

Key Highlights:

• Delhi's draft EV Policy 2.0 proposes phasing out internal combustion engine (ICE) three-wheelers by January 2027 and two-wheelers by April 2027.
• The revised draft of CAFE-3 norms by the Bureau of Energy Efficiency (BEE) aims to promote electric vehicle adoption in passenger cars.
• CAFE norms are the primary regulatory tool to influence the passenger car segment, where EV penetration is only around 4%.

Detailed Insights:

• Delhi's draft EV policy shifts from subsidies to regulatory direction by setting clear phase-out timelines for ICE vehicles, crucial for sustained EV adoption.
• The revised CAFE-3 draft includes positive changes like tightened provisions for small petrol vehicles and mechanisms for credit pooling and compliance credit purchase.
• Concerns remain regarding the use of super-credit multipliers for hybrid technologies, which may dilute the focus on full electrification and delay the transition to zero-emission vehicles.
• Finalizing CAFE-3 is urgent due to delays causing manufacturers to defer investment decisions and slowing the evolution of EV supply chains.
• A comprehensive framework similar to CAFE, tailored for the commercial vehicle sector, is needed to incentivize the adoption of zero-emission technologies in trucks.
• The author suggests BEE should function decisively as a regulator, finalize CAFE-3, set an ambitious EV trajectory for passenger cars, and establish a fleet-average framework for trucks.

Key Concepts Involved:

• EV Policy: Government strategies to promote the adoption of electric vehicles through incentives and regulations.
• CAFE Norms: Corporate Average Fuel Efficiency standards that regulate the average fuel efficiency of vehicles sold by a manufacturer.
• Fleet-Average Framework: A regulatory approach that sets emission or efficiency targets for the average of a manufacturer's entire vehicle fleet.