Toyota Kirloskar Pushes Govt for Final CAFE 3 Emission Norms Clarity
Overview
Toyota Kirloskar Motor is urging the government to finalize the Corporate Average Fuel Efficiency (CAFE) 3 notification promptly. The proposed standards, set to regulate passenger vehicle fuel consumption and carbon emissions from April 2027 to March 2032, require swift clarity for industry preparation. Manufacturers are debating specific provisions, including leniency for small cars and incentives for electric and hybrid vehicles.
Stocks Mentioned
Call for Regulatory Clarity
Toyota Kirloskar Motor is pressing the Indian government to swiftly issue the final notification for the upcoming Corporate Average Fuel Efficiency (CAFE) 3 standards. The executive vice-president, Vikram Gulati, stated that timely clarity is essential for the automotive industry to prepare for regulations set to govern passenger vehicle fuel consumption and carbon emissions from April 2027 through March 2032.
Understanding CAFE 3
The CAFE norms aim to reduce average fuel consumption and CO2 emissions across a manufacturer's fleet. The proposed CAFE 3 framework introduces tighter fleet-wide targets. It also includes provisions for specific relief for small petrol cars and significant incentives for electric and hybrid vehicles. Gulati emphasized that these regulations must align with national energy substitution programs, supporting alternatives like ethanol and compressed bio gas, while remaining scientifically sound and realistic in their ambition.
Industry Views Diverge
The specific details of the CAFE 3 norms have sparked debate among key industry players. A section of manufacturers, including Tata Motors, opposes any leniency for small cars, citing concerns over fairness based on weight and affordability. Conversely, larger players like Maruti Suzuki argue that the core intent of the new norms is to drive fuel efficiency improvements and emission reductions across all vehicle sizes. Toyota Kirloskar Motor, which does not operate in the small car segment, has refrained from taking a specific stance on this particular debate.
