SIAM Supports CAFE-3 Draft, Urges Swift Notification Amid Tight Deadlines

The Society of Indian Automobile Manufacturers (SIAM) has supported the latest draft of Corporate Average Fuel Efficiency (CAFE-3) norms and urged the government to notify them at the earliest, citing limited time available before implementation begins in April 2027, as per The Business Standard report. 

The industry body shared its position during a meeting with officials from the Ministries of Power, Road Transport and Highways, Heavy Industries, and Petroleum and Natural Gas. 

Discussion Led by Power Ministry 

The meeting was chaired by Power Secretary Pankaj Agarwal and included a presentation by the Bureau of Energy Efficiency (BEE) on the draft dated April 10. 

As per the report, officials and industry participants discussed the structure of the proposed norms and outstanding issues raised during consultations held over the past 2 years. 

CAFE-3 Framework and Timeline 

CAFE standards prescribe fleet-wide carbon dioxide emission limits for passenger vehicles sold by manufacturers in a given year, measured in grammes per kilometre (g/km). 

The current phase, CAFE-2, remains operational. CAFE-3 is scheduled to run for 5 years starting April 2027, with tighter emission targets compared to the existing norms. 

Change in Approach for Small Cars 

A key issue under discussion has been the treatment of vehicles weighing less than 909 kg. Earlier drafts had included a separate carve-out for such vehicles. 

The April 10 draft does not provide this exemption. Instead, it modifies the main calculation formula used to determine emission limits for each manufacturer. 

Divergence Among Manufacturers 

During the meeting, 3 carmakers reiterated the need for a specific carve-out for smaller vehicles. 

Other manufacturers opposed this view, stating that the revised formula already accounts for the constraints faced by smaller vehicles and that a separate provision may not be required. 

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Conclusion 

Consultations on CAFE-3 have continued for over 2 years. With timelines narrowing ahead of the 2027 rollout, the industry has indicated the need for early clarity to align production and compliance planning. 

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