TL;DR
Delhi's new EV policy and nationwide CAFE-III norms signal a strong government push towards electrification and improved fuel efficiency in India, driven by environmental and energy security concerns.
The Draft Delhi Electric Vehicle (EV) Policy 2026-2030 aims to address both fuel supply disruptions and persistent air pollution, introducing incentives that taper over time to encourage early adoption. The policy includes mandates, such as only electric three-wheelers being eligible for new registration from January 2027 and electric two-wheelers from April 2028.
Concurrently, India's automobile industry and government have reached a broad consensus on the Corporate Average Fuel Efficiency (CAFE-III) norms, slated for implementation from April 2027. These stricter standards will require automakers to meet improved fleet-wide fuel efficiency and reduced carbon dioxide emission targets. The overall push towards electrification is further underscored by India's oil and gas import dependence, making transport electrification a critical strategy for energy security.
