Tata Motors Opposes CAFE Norm Exemptions for Small Vehicles

As per PTI reports, Tata Motors has opposed proposals to exempt small petrol vehicles from India’s next phase of Corporate Average Fuel Efficiency (CAFE) norms. The automaker said such exemptions could weaken the policy intent of reducing fuel consumption and emissions across passenger vehicles. 

Draft Rules and Scope 

The government has issued draft CAFE regulations covering the period from April 2027 to March 2032. The proposed framework sets tighter fleet-level fuel efficiency and carbon emission targets for vehicle manufacturers.  

It also includes potential relaxations for petrol cars weighing up to 909 kg, with engine capacity limited to 1,200 cc and overall length restricted to 4,000 mm. 

Impact on Clean Vehicle Rollout 

Tata Motors said India’s push towards future vehicle technologies is beginning to show results. Electric vehicles currently account for nearly 5% of passenger car sales.  

The company stated that introducing exemptions for small petrol cars could reduce the focus on expanding models based on cleaner technologies, including electric vehicles. 

Effect on Manufacturer Portfolios 

CAFE limits are calculated at an original equipment manufacturer’s overall portfolio level, rather than on individual models.  

Tata Motors noted that allowing concessions to a specific sub-category of vehicles could reduce the need for manufacturers to offset emissions through cleaner vehicles in their portfolios. This, it said, may weaken the effectiveness of fleet-wide targets. 

Safety-related Concerns 

The automaker also raised concerns around vehicle safety. It said weight-based relaxations could encourage manufacturers to lower vehicle weight in order to qualify for exemptions.  

According to the company, this may affect the inclusion of safety features and could reverse progress made in improving safety standards over recent years. 

Request for Uniform Norms 

In its submission, Tata Motors requested that the government avoid creating special categories of vehicles based on size or weight for the purpose of CAFE concessions.  

The company said such distinctions could conflict with objectives related to emissions reduction, road safety, and maintaining uniform regulatory conditions for manufacturers. 

Tata Motors Share Price Performance  

As of December 19, 2025, 9:26 am, Tata Motors Passenger Vehicles Ltd (TMPV) share price was trading at ₹352.35, a 1.89% increase from the previous closing price. 

Read More: Tata Motors Commercial Vehicles Surge 30% in a Month: Exports and Cash Flows Drive Rally! 

Conclusion 

The comments were submitted as part of the consultation process on the draft CAFE rules. Tata Motors has asked for a uniform application of fuel efficiency norms, without exemptions for specific vehicle segments, as the government finalises regulations for the next phase. 

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