New Delhi, February 25 The Ministry of Power has sent the proposal on Corporate Average Fuel Efficiency (CAFE)-III norms to the Prime Minister's Office after a meeting with stakeholders, Union Heavy Industries Minister H D Kumaraswamy said on Wednesday, even as the auto industry appears to be divided over the treatment of small cars and changes in technical definitions.
On the differences among auto industry stakeholders on the CAFE-III norms, Kumaraswamy told reporters, "We already had a meeting with stakeholders and the Ministry of Power. According to my information, the Ministry of Power has now, after the meeting with stakeholders, sent the proposal to the PMO."
No leniency should be granted to small cars under the Corporate Average Fuel Efficiency (CAFE-III) norms based on weight and affordability, as this would compromise safety features while distracting from concrete action towards sustainable mobility, Tata Motors Passenger Vehicles Ltd Managing Director & CEO Shailesh Chandra had said in November.
However, market leader Maruti Suzuki India has been vocal in proposing such a concession for small cars, and its Chairman R C Bhargava had argued that the purpose of CAFE norms was to encourage carmakers to improve fuel efficiency and reduce emissions.
The CAFE norms, which began in 2017, set limits on the average fuel consumption and CO2 emissions of a manufacturer's overall fleet, with the aim of encouraging carmakers to improve their overall fuel efficiency and reduce emissions.
CAFE-II began in 2022, and the next phase, CAFE-III, is likely to begin from April 2027, for which new criteria are under discussion between various stakeholders, with the Bureau of Energy Efficiency (BEE) under the Ministry of Power releasing a draft regulation in September this year for feedback.