India Advances Toward Finalizing Next Phase of Vehicle Fuel Efficiency Regulations
The Indian government has taken a significant step forward in establishing the next generation of fuel efficiency standards for passenger vehicles across the nation. According to reports from PTI, Union Heavy Industries Minister H D Kumaraswamy has confirmed that the proposal for the upcoming Corporate Average Fuel Efficiency (CAFE)-III norms has been formally submitted to the Prime Minister's Office for final review and approval.
Extensive Consultations Precede Submission to PMO
Minister Kumaraswamy revealed that comprehensive discussions have already occurred between relevant government ministries and key stakeholders within the automobile manufacturing sector. Following these detailed consultations, the power ministry has officially forwarded the complete proposal to the PMO for further consideration and potential implementation. This development marks a crucial milestone in India's ongoing efforts to enhance vehicle efficiency and reduce environmental impact through regulatory frameworks.
The forthcoming CAFE-III regulations are anticipated to profoundly influence how automobile companies strategize their future product portfolios and allocate resources toward technological advancements. These rules will establish critical parameters that manufacturers must adhere to when planning their vehicle line-ups and investment decisions in coming years.
Industry Divided on Treatment of Small Cars
However, the automotive sector remains deeply divided regarding specific aspects of the proposed regulations, particularly concerning how smaller vehicles should be treated under the new framework. Tata Motors Passenger Vehicles Managing Director and CEO Shailesh Chandra has previously expressed strong opposition to granting relaxed norms for small cars based on affordability or weight considerations.
Chandra has argued consistently that such concessions could potentially compromise safety features and hinder progress toward cleaner mobility solutions. He maintains that all vehicle segments should be held to rigorous standards to ensure comprehensive improvements in both efficiency and safety across the entire automotive landscape.
In contrast, Maruti Suzuki has voiced support for providing special consideration to small cars within the regulatory framework. Chairman R C Bhargava has emphasized that the original intent behind CAFE norms was primarily to push larger vehicles toward greater efficiency improvements and reduced emissions. This fundamental disagreement highlights the complex balancing act regulators face between environmental goals and practical industry considerations.
Evolution of CAFE Regulations in India
The Corporate Average Fuel Efficiency framework was initially introduced in India during 2017, establishing comprehensive limits on average fuel consumption and carbon dioxide emissions across each manufacturer's complete vehicle fleet. The second phase of these regulations became effective in 2022, building upon the foundation established by the initial implementation.
The third phase, now under consideration, is expected to commence from April 2027, representing the next evolutionary step in India's automotive regulatory landscape. Draft regulations for CAFE-III were previously released by the Bureau of Energy Efficiency operating under the power ministry, with stakeholder feedback forming an integral component of the ongoing development process.
This regulatory progression demonstrates India's continued commitment to aligning its automotive industry with global environmental standards while addressing unique domestic market considerations. The finalization of CAFE-III norms will establish a clear roadmap for manufacturers as they navigate the transition toward more efficient and environmentally responsible vehicle technologies in the coming decade.
