India's Automakers Support New Fuel Efficiency Rules Set for 2027
Automakers give the green light to CAFE III proposals, norms to come into effect from April 2027
The Economic TimesImage: The Economic Times
India's automakers have agreed to the Corporate Average Fuel Efficiency (CAFE III) proposals, which aim to reduce CO2 emissions from passenger vehicles. The new regulations will be implemented from April 1, 2027, with a focus on improving fuel consumption and emissions standards across different vehicle categories.
- 01The Corporate Average Fuel Efficiency (CAFE III) norms will take effect from April 1, 2027.
- 02The Society of Indian Automobile Manufacturers (SIAM) supports the new guidelines, calling them balanced.
- 03Carmakers are required to improve CO2 emissions across their fleets annually until 2031-32.
- 04The draft proposes stricter emission targets for heavier vehicles while relaxing them for smaller cars.
- 05There was no request to delay the implementation of CAFE III during discussions.
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India's automakers have expressed their support for the Corporate Average Fuel Efficiency (CAFE III) proposals, which are designed to set limits on CO2 emissions for passenger car fleets. The new regulations will come into effect on April 1, 2027. The Society of Indian Automobile Manufacturers (SIAM), led by president Shailesh Chandra, described the guidelines as 'balanced' and aligned with the goals of improving fuel consumption and reducing emissions. The updated norms will require automakers to enhance CO2 emissions across their vehicle fleets annually until 2031-32. While some manufacturers requested the creation of a new category for small cars, others agreed that the revised draft, which relaxes emission targets for smaller vehicles while tightening them for heavier ones, does not necessitate further changes. Industry representatives noted that a significant consensus was achieved among over 20 passenger car makers, despite the diversity in their portfolios. The discussions did not entertain any requests to delay the implementation timeline, indicating a strong commitment to the new regulations.
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The implementation of CAFE III will likely lead to improved fuel efficiency in vehicles, potentially lowering fuel costs for consumers and reducing environmental impact.
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