Ministry of Power Forwards CAFE-III Proposal to Prime Minister’s Office
New Delhi, February 25: The proposal for the next phase of Corporate Average Fuel Efficiency norms, known as CAFE-III, has been sent to the Prime Minister’s Office following consultations with stakeholders, Union Heavy Industries Minister H D Kumaraswamy said on Wednesday.Addressing reporters, Kumaraswamy confirmed that discussions had already taken place between industry stakeholders and the Ministry of Power.
“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,” he said.
The development marks a key step in finalising the next stage of India’s fuel efficiency and emission standards framework for passenger vehicles.
Auto Industry Divided Over Treatment of Small Cars
Even as the proposal advances, the auto industry remains divided over certain aspects of the CAFE-III norms, particularly the treatment of small cars and technical definitions under the framework.Shailesh Chandra, Managing Director and CEO of Tata Motors Passenger Vehicles Ltd, had stated in November that no leniency should be granted to small cars under CAFE-III norms based on weight and affordability. According to him, such concessions could compromise safety features and divert attention from concrete action towards sustainable mobility.
On the other hand, market leader Maruti Suzuki India has advocated for concessions for small cars. Its Chairman R C Bhargava has argued that the primary objective of CAFE norms is to encourage carmakers to improve fuel efficiency and reduce emissions across their fleets.
What Are CAFE Norms?
The Corporate Average Fuel Efficiency norms were introduced in 2017. They set limits on the average fuel consumption and carbon dioxide emissions of a manufacturer’s overall fleet. The goal is to push carmakers to enhance fuel efficiency and lower emissions at a fleet-wide level.CAFE-II came into effect in 2022. The next phase, CAFE-III, is expected to begin from April 2027. New criteria are currently under discussion among stakeholders.
The Bureau of Energy Efficiency under the Ministry of Power released a draft regulation in September this year seeking feedback, setting the stage for the next round of fuel efficiency standards that will shape India’s automotive sector from 2027 onward.
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