Auto Industry Gears Up for CAFE III Compliance Challenge
Automobile manufacturers face stricter fuel efficiency norms starting April 2027 as the government plans to implement Corporate Average Fuel Efficiency III standards. With small car makers seeking leniency and large OEMs opposing differential treatment, a high-level meeting will address the draft rules and compliance framework.
- Country:
- India
Automobile manufacturers are on the clock as they prepare to comply with more stringent fuel efficiency standards set to take effect from April 2027. The Corporate Average Fuel Efficiency III standards will be implemented without any deadline extension, according to Hanif Qureshi, Additional Secretary in the Ministry of Heavy Industries.
The standards have been a point of contention among industry stakeholders. Small car manufacturers are advocating for leniency in the rules due to concerns over weight and affordability, while larger original equipment manufacturers (OEMs) argue against differential treatment, citing potential compromises in safety features.
A high-level meeting, scheduled for April 16, will see the participation of secretaries from various ministries like Power, Heavy Industries, and Road Transport & Highways, to deliberate on the draft norms. The proposed rules aim to introduce a flexible compliance framework, including easing penalties and facilitating carbon credit trading among manufacturers.
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