Why Amitabh Kant Is Wrong: Going EV-Only Makes No Sense
Written By: Kailash Jha Published: October 2, 2026 at 12:35 PM
Introduction
Former NITI Aayog CEO Amitabh Kant has criticised the final CAFE III rules for not pushing carmakers hard enough towards electric vehicles (EVs). His central argument is that while EVs are already close to 8% of passenger vehicle sales this financial year, the framework aims for only about 11% by 2032. He believes EVs should be the destination, not just one option among many.
Concerns Over Oil Imports
India imports nearly 90% of its crude oil, making reducing petroleum use crucial for energy security. However, mandating EVs as the sole solution carries risks when the domestic supply chain and charging ecosystem are still under development.
CAFE III Framework
CAFE III is not neutral among all technologies; it favours battery EVs and range-extender EVs with a 3x volume multiplier in fleet calculations, the strongest compliance benefit. Plug-in hybrids, flex-fuel strong hybrids, conventional strong hybrids, and flex-fuel vehicles receive lower multipliers (2.5x, 1.6x, and 1.1x respectively). EVs are already heavily favoured without being made mandatory.
Supply Chain Concentration
The strongest argument against an EV-only policy is the concentrated global supply chain. The International Energy Agency reports that China accounts for over 80% of global battery cell production, cathode active material, and anode active material. India's efforts to localise batteries through the Advanced Chemistry Cell PLI programme face significant gaps; as of March 2026, only 1GWh of installed capacity met domestic demand largely through imports.
Global Trends in EV Mandates
Recent policy changes globally demonstrate the challenges of rigid timelines:
- The European Commission adjusted its 2035 car target to a 90% tailpipe-emissions reduction.
- The UK is reviewing its Zero Emission Vehicle mandate again in 2026.
- The US lowered fuel-economy requirements in September 2026.
These changes do not indicate EV failure; sales continue to grow worldwide. They show governments adapt when affordability, capacity, or demand deviate from initial plans.
Variations in Infrastructure and Use Cases
Charging infrastructure has grown rapidly, with 52,718 public charging stations (including 16,561 fast chargers) by July 2026. However, availability varies significantly by location, and vehicle use cases differ; an urban commuter might prefer an EV, while a high-mileage intercity user may opt for a hybrid or CNG car.
CAFE III allows various routes to achieve fuel efficiency targets, catering to diverse needs.