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Kia Raises Concerns Over CAFE-III Norms with PMO

Written by: Team Angel OneUpdated on: 27 Dec 2025, 4:16 pm IST
Kia joins JSW MG and Tata Motors in opposing special concessions for small petrol cars under CAFE-III norms, writing to the PMO.
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Kia has expressed its concerns to the Prime Minister’s Office (PMO) regarding the proposed special concessions for small petrol cars under the upcoming Corporate Average Fuel Efficiency-3 (CAFE-3) emission norms.  

This move follows similar actions by JSW MG Motor and Tata Motors Passenger Vehicles. 

Kia's Concerns About CAFE-III Norms 

Kia's recent communication with the PMO highlights its apprehension about the proposed sub-category for small petrol cars weighing less than 909 kg.  

The carmaker argues that this could undermine the primary objective of the CAFE framework, which aims to promote green technologies such as electric vehicles (EVs) and ensure a consistent reduction in fleet-wide carbon dioxide emissions. 

The CAFE framework is designed to encourage automakers to adopt more environmentally friendly technologies, thereby reducing the carbon footprint of their vehicle fleets over time. By allowing a special concession for lighter petrol vehicles, Kia believes the framework's effectiveness could be compromised. 

Industry-Wide Opposition 

Kia is not alone in its concerns. JSW MG Motor and Tata Motors Passenger Vehicles have also approached the PMO with similar objections. These companies argue that the proposed concessions could lead to a dilution of the CAFE framework's goals, potentially slowing the transition towards more sustainable automotive technologies. 

Read More: Toyota Motors Reports November Sales Decline Amid Slump in China Market! 

Implications for the Automotive Sector 

The proposed changes to the CAFE-III norms have sparked significant debate within the automotive industry.  

While some argue that the concessions could benefit smaller car manufacturers, others contend that they could hinder the broader push towards electrification and sustainability. 

The outcome of these discussions could have far-reaching implications for the automotive sector, influencing manufacturing strategies and the adoption of green technologies across the industry. 

Conclusion 

Kia's decision to address its concerns with the PMO underscores the broader industry apprehension regarding the proposed CAFE-III norms. As discussions continue, the balance between promoting green technologies and accommodating smaller petrol vehicles remains a critical issue for stakeholders. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Dec 27, 2025, 10:46 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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