Amid lobbying, govt may defer fuel efficiency norms for car cos | India News
New Delhi: Amid lobbying by car companies, the government may defer the implementation of Corporate Average Fuel Efficiency (CAFE 3.0) norms beyond April 2027. The Prime Minister’s Office has held two meetings in the last three weeks and more discussions are planned on the matter to create an acceptable formula and help improve e-industry efficiency.In a meeting at the PMO on Monday, the power ministry made a detailed presentation on the proposed CAFE 3.0 norms, highlighting the “urgent” need to notify the norms. For the first time, the ministry presented a detailed assessment of the expected performance of the country’s top five car makers. It said that is based on the proposed framework, which will only be released for public comment Tata Motors will be able to meet the target between 2027-28 and 2031-32 Maruti Suzuki And Hyundai Motors India can’t cut it.The presentation shows that Toyota-Kirloskar Motors will be able to meet the target in the first three years, from 2027-28 to 202930, while Mahindra & Mahindra will miss the targets in the first three years. “Going by this, the proposed regime will impose high penalties on companies that do not meet the targets,” an official said.The CAFE 3.0 rules offer the elimination of derogations (additional allowances) or relief for small car manufacturers, when intending to introduce RangeExtended Electric Vehicles (REEV), with a Volume Derogation Factor (VDF) equal to 3 for electric vehicles. The VDF is a targeted government scheme for the sale of low-emission vehicles such as EVs, REEVs and hybrids.“As per the current situation, it may take at least a few months to inform the rules. It will take at least a year for the industry to implement it,” said a person aware of the development.
