JSW Motors has welcomed the government’s newly notified Corporate Average Fuel Efficiency (CAFE-III) norms, saying the framework recognises India’s transition towards cleaner mobility technologies while addressing the country’s dependence on imported fossil fuels.
JSW Motors CEO Ranjan Nayak said the new norms provide a progressive framework for India’s mobility transition and could support greater adoption of increasingly efficient and electrified technologies.
Multi-powertrain transition
Nayak said the CAFE-III framework recognises that India’s transition towards electrification will involve multiple powertrain technologies, with batteries playing a central role.
The framework supports technologies including battery electric vehicles (BEVs), range-extended electric vehicles (REEVs) and plug-in hybrid electric vehicles (PHEVs), alongside other eligible electrified powertrains.
“The CAFÉ-III norms recognise that the road to electrification will be a multi-powertrain journey, with batteries acting as the bedrock of this green transition,” said Nayak.
According to Nayak, supporting multiple clean-technology pathways can help accelerate fuel-efficiency improvements, technology adoption and the decarbonisation of passenger vehicles.
Higher incentives for battery-led technologies
JSW Motors particularly welcomed the higher volume derogation factor, or super credit, of 3.0 for BEVs and REEVs under the new framework.
PHEVs and eligible strong hybrid vehicles receive a volume derogation factor of 2.5.
Nayak said the higher factor for BEVs and REEVs recognises the contribution of battery-led technologies while allowing other electrified powertrains to participate in the transition.
The CAFE-III framework uses these factors in fleet-average calculations to provide additional incentives for manufacturers deploying cleaner vehicle technologies.
Credit trading adds flexibility
JSW Motors also welcomed provisions allowing manufacturers to pool and trade compliance credits.
Nayak said the mechanism would give manufacturers greater flexibility in meeting CAFE targets while creating an economic incentive for companies investing in cleaner and more efficient technologies.
Under the new framework, manufacturers that outperform prescribed targets can generate compliance credits, while manufacturers facing a compliance gap can use eligible mechanisms to meet their obligations.
Focus on lower fossil-fuel dependence
Nayak said India’s transition towards greener mobility is also important from an energy-security perspective because reducing fossil-fuel consumption can lower dependence on imported energy.
India has set a target of achieving net-zero emissions by 2070. Nayak said achieving the long-term goal will require sustained technological innovation and collective action across the mobility ecosystem.
“A policy framework that encourages cleaner, more efficient and increasingly electrified mobility is an important step towards that zero-carbon ambition,” he said.
JSW Motors said it looks forward to working with the government and the wider automotive industry to accelerate the transition towards cleaner and more sustainable mobility.