Expect More Electric Vehicles Soon With Carmakers Requiring To Meet CAFE Norms
It is a challenging task but the future Cafe norms are even more stringent which would be expected to come into play in 2027 and for that you need EVs
The automobile segment is highly influenced by Corporate Average Fuel Efficiency (CAFE) norms which are regulations done to increase fuel efficiency and of course to reduce carbon dioxide (CO2) emissions. It is not based on a single model of a carmaker but on the entire range of cars. Hence to meet these targets, carmakers have to launch more fuel efficient cars including EVs and hybrids which affect it more.
However, not only that as fuel saving technology plays an important role. Hence, there are more downsized engines with a focus on greater fuel efficiency. For the consumer it means more efficient cars and more cleaner cars but it also means more expensive cars as both Bharat Stage VI emission norms and this will make automobiles have more technology plus will also get more expensive. Also if these Cafe norms are not met, there would be hefty fines. This also means carmakers have to price their cars in a bid to stand out in this heavily congested market while also making cars with the latest technology which comply with these norms.
It is a challenging task but the future Cafe norms are even more stringent which would be expected to come into play in 2027 and for that you need EVs. Till now manufacturers have managed to meet them with ICE portfolio and a small EV range but slowly that will change. That change is also happening with a lot of new EVs coming into the market. There is the first Maruti Suzuki EV and the first mass market EV from Hyundai while Mahindra will be having no less than two of them. Plus Tata and others also will bring new EVs. Going forward we can see turbo petrol engines also slowly replacing naturally aspirated ones because of being more fuel efficient too.
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