New Delhi: India should incentivise adoption of lightweight, fuel-efficient and smaller entry-level cars under the Corporate Average Fuel Efficiency (CAFE) regulations as is increasingly the case in leading global markets, the Niti Aayog said in a report.
The pathway modelled in the report for attaining net-zero emission implicitly assumes a sharp increase in the market share of zero-emission vehicles-to 100% by around 2055-so that fleet-level emissions taper to zero by 2070.
In a country with around 33 cars per 1,000 people, cars are still an aspirational commodity for most households, said the report, 'Scenarios Towards Vikshit Bharat and Net Zero' for the transport sector, prepared by an inter-ministerial panel. "Bridging affordability barriers for marginal segments is therefore critical, particularly as first-time buyers look to upgrade from two-wheelers," it said. "The opportunity lies in deliberately prompting smaller, affordable cars for these first-time buyers, which can provide significant co-benefits in terms of higher fuel efficiency, lower emissions, and reduced pressure on traffic and parking." It also stressed on the need to account for lifecycle emission benefits of sustainable biofuels while considering incentives.
The report also said the country must adopt a time-bound plan to "sunset" the relaxations and shift toward true lifecycle-zero vehicles to ensure that CAFE regulations remain credible and future-ready.
The pathway modelled in the report for attaining net-zero emission implicitly assumes a sharp increase in the market share of zero-emission vehicles-to 100% by around 2055-so that fleet-level emissions taper to zero by 2070.
In a country with around 33 cars per 1,000 people, cars are still an aspirational commodity for most households, said the report, 'Scenarios Towards Vikshit Bharat and Net Zero' for the transport sector, prepared by an inter-ministerial panel. "Bridging affordability barriers for marginal segments is therefore critical, particularly as first-time buyers look to upgrade from two-wheelers," it said. "The opportunity lies in deliberately prompting smaller, affordable cars for these first-time buyers, which can provide significant co-benefits in terms of higher fuel efficiency, lower emissions, and reduced pressure on traffic and parking." It also stressed on the need to account for lifecycle emission benefits of sustainable biofuels while considering incentives.
The report also said the country must adopt a time-bound plan to "sunset" the relaxations and shift toward true lifecycle-zero vehicles to ensure that CAFE regulations remain credible and future-ready.