Kia Raises Concerns Over CAFE-III Norms with PMO

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

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