Automakers Urge Higher EV Credits Under Proposed CAFE III Emission Norms

Imagine cars get a 'grade' for how much pollution they produce.

The government wants to make these grades better over time with new rules for cars from 2027 to 2032.

For cars that pollute less, like electric cars (EVs) or cars that use ethanol or hybrids, they get a 'bonus' that helps lower their pollution grade.

Car companies, through SIAM, think that electric cars, which don't pollute at all from their tailpipes, deserve a much bigger bonus than cars that still use gasoline, even if they are more efficient.

They say the current bonus difference isn't big enough to encourage companies to focus more on making only electric cars.

Companies are already investing a lot in EVs, and they need these higher bonuses to make it financially worth it.

This is especially important for smaller cars and bigger SUVs, which have different challenges in meeting the new rules.