Auto Industry Debates New CAFE III Norms

The Society of Indian Automobile Manufacturers (SIAM) is reviewing the draft Corporate Average Fuel Efficiency (CAFE III) norms to finalize a position on its implementation timeline. The auto industry is divided; small car manufacturers seek leniency, while others prioritize safety. A meeting with the Bureau of Energy Efficiency is forthcoming.

The auto industry is currently embroiled in discussions over the new CAFE III fuel efficiency norms. The Society of Indian Automobile Manufacturers (SIAM) is conducting a review of the draft to gauge the readiness of manufacturers for its implementation.

During a press conference, SIAM President Shailesh Chandra, who also serves as the MD and CEO of Tata Motors Passenger Vehicles Ltd., refrained from commenting on proposed incentives for small cars within the draft. The industry remains divided, with small car manufacturers advocating for leniency based on weight and affordability, while larger OEMs such as Tata Motors and Hyundai emphasize the need for uniform standards to maintain safety.

A meeting with the Bureau of Energy Efficiency is scheduled to discuss the timeline. Meanwhile, government officials have indicated that stricter norms will need to be adhered to by April 1 next year. Chandra also emphasized the need for an enabling environment for electric vehicles through incentives and infrastructure, advocating for reducing mandates.