Fuel Efficiency Face-Off: Controversies Surrounding CAFE-III Norms

A proposal for CAFE-III norms was sent to the Prime Minister's Office amid industry divisions. Disputes arise over leniency for small cars in fuel efficiency rules, with industry leaders like Tata Motors opposing concessions while Maruti Suzuki supports them. The ongoing debate impacts future guidelines effective April 2027.

The proposal for the Corporate Average Fuel Efficiency (CAFE)-III norms has been forwarded to the Prime Minister's Office, according to Union Heavy Industries Minister H D Kumaraswamy. This follows a meeting with stakeholders, amid disagreements within the auto industry regarding small cars and technical definitions.

Shailesh Chandra, Managing Director & CEO of Tata Motors Passenger Vehicles Ltd, emphasized that no leniency should be granted to small cars under the CAFE-III norms based on weight and affordability, arguing it would compromise safety and undermine sustainable mobility efforts. Contrarily, Maruti Suzuki has advocated for concessions, arguing that CAFE norms should primarily target improvements in the fuel efficiency of larger vehicles.

The CAFE regulations, aimed at enhancing fuel efficiency and reducing emissions, have been in effect since 2017, with the forthcoming CAFE-III phase expected to commence in April 2027. Ongoing discussions are taking place between stakeholders, the Bureau of Energy Efficiency, and the power ministry to finalize the criteria, following the release of draft regulations in September.

(With inputs from agencies.)