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India's Auto Industry Battles Tighter Fuel Rules
18 Dec
Summary
- Carmakers urge government to relax fuel efficiency targets and boost EV incentives.
- Industry split over proposed concessions for small cars, favoring Maruti Suzuki.
- Stricter CAFE norms aim for significant fuel efficiency improvements by 2032.
India's automotive sector is actively engaging with the government to influence upcoming fuel efficiency regulations and EV incentives. Carmakers are seeking a relaxation of the stringent Corporate Average Fuel Efficiency (CAFE) rules, which include ambitious annual improvement milestones and revised incentives for various powertrains. These negotiations could significantly shape the country's vehicle landscape for the next decade.
A key point of contention is the proposed "super-credit" system for zero-emission vehicles and the feasibility of the annual fuel efficiency targets. The industry argues these goals are too steep. Furthermore, a division exists regarding concessions for small cars, with Maruti Suzuki advocating for them while other manufacturers resist special treatment.
The proposed CAFE 3 norms are slated for implementation from April 2027, mandating a significant improvement in fleet-wide fuel efficiency by 2032. Experts note that balancing regulatory ambition with market feasibility is crucial for ensuring India's automotive sector remains competitive globally, especially in light of evolving international standards.
