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Auto Industry Backs Draft CAFE 3 Fuel Norms
6 Jun
Summary
- Industry broadly supports ambitious CAFE 3 fuel efficiency targets.
- Proposed norms include flexibility via technology and volume derogations.
- Companies want CAFE 3 targets notified early for compliance planning.
The domestic automotive industry has unanimously welcomed the draft Corporate Average Fuel Efficiency (CAFE 3) norms, issued on April 8. During a recent meeting, the Society of Indian Automobile Manufacturers (SIAM) conveyed that while the targets are ambitious, the government's approach offers sufficient flexibility. This includes technology and volume derogations, alongside provisions for pooling and credit purchases, aiding industry compliance.
The CAFE norms aim to reduce fuel consumption and CO2 emissions, with targets progressively tightening. The Phase 3 proposal sets a terminal target of 78.9 g/km by FY32. OEMs, including Maruti Suzuki and Tata Motors, attended the meeting. Key demands included greater relief for small cars and increased credit for electric vehicles, though these were rejected.
OEMs also unanimously requested the transfer of credits from FY28-FY30 into the FY31-FY32 phase to ease compliance. The Ministry of Power also advised automakers to prepare for the upcoming E25 mandate, expected within months.
