New CAFE-3 norms may impact small car production and prices, ETAuto



<p>People aware of the proposed policy said that since carmakers would be discouraged from manufacturing small cars that meet CAFE-related regulatory norms, the difference in migration of people from two-wheelers to cars could increase</p>
<p>“/><figcaption class=People aware of the proposed policy said that since carmakers would be discouraged from manufacturing small cars that meet CAFE-related regulatory norms, the gap in migration of people from two-wheelers to cars could widen.

Small car makers may face more regulatory challenges as revised draft of CAFE-3 proposes vehicle improvements fuel efficiency And reducing carbon emissions has been implemented. Those involved in the deliberations said the latest proposed amendments would support larger vehicles, especially electric and hybrid electric vehicles.

with corporate average fuel efficiency With the (CAFE) issue unresolved due to tussle among car manufacturers, the PM’s office has intervened in the matter and involved the petroleum and heavy industries ministries besides the road transport and power ministries to finalize the norms. This is the third draft of CAFE-3 in the last two years.

CAFE refers to government-regulated standards that mandate a minimum average fuel efficiency and the maximum CO2 emissions level for the entire fleet of vehicles sold by a car manufacturer. Instead of examining individual models, it measures a weighted average of all cars produced by a manufacturer.

According to the latest draft of CAFE-3, which has not been released yet, the Bureau of Energy Efficiency (BEE) has proposed to eliminate the humiliation (additional allowance) or relief for small car manufacturers. It has introduced a range-extended electric vehicle (reeve), which will have a volume deviation factor (VDF) of 3, similar to electric cars. VDF is a targeted government measure to promote sales of low-polluting vehicles such as EVs, REEVs and hybrids.

Removing the disincentive for small cars is expected to push up prices of entry-level petrol cars, said people aware of the latest changes. He said REEV has been introduced keeping in mind the current low penetration of EV charging infrastructure, range anxiety among buyers and uncertainty of battery life. There is debate over whether REEVs should be considered equivalent to EVs because, unlike EVs, these vehicles have tailpipe emissions when the engine is running.

People aware of the proposed policy said that since carmakers would be discouraged from manufacturing small cars that meet CAFE-related regulatory norms, the gap in migration of people from two-wheelers to cars could widen. Industry officials said as per the draft norms, the cost of new cars under the proposed CAFE-3 regime will increase by about 10 per cent as carmakers will have to add more fuel-saving technologies to meet the new standards or face penalties.

  • Published on March 11, 2026 at 10:27am IST

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Elon Musk’s AI company Grok will make chatbots more accessible, here’s how

Elon Musk's AI company Grok will make chatbots more accessible, here's how

Elon Musk ChatGPT creator has been highly criticized OpenAI To deviate from their mission of developing AI for the benefit of humanity and pursue the path of profit making. He has advocated that artificial intelligence (AI) should be accessible to everyone, and now he has announced his AI startup xai source will open grok chatbot This week.
“This week, @xAI will open source Grok,” Musk said in a post on X (formerly Twitter).
In simple terms, open-sourcing a software like a chatbot means that the software projects are redistributable because all the source code is accessible to everyone. One of the advantages of having open source software is that it provides the flexibility for an enterprise to have multiple ways to fix a problem rather than waiting for an internal team to provide a solution.
“OpenAI is a lie”
Meanwhile, a user suggested that OpenAI should also do the same.
The user said, “OpenAI should do the same if they are ‘open’.” Musk responded, “OpenAI is a lie.”

Musk wants AI technology to be open-source
Musk floated the idea of ​​open-sourcing AI during a podcast in November last year. In a podcast with Lex Friedman, Musk suggested that he likes the idea of ​​open-source AI. “I’m generally in favor of open sourcing, like I’m biased against open sourcing,” he said.
His comments came soon after AI company XAI released its chatbot Grok, which reportedly took four months to create. OpenAI CEO Sam Altman He immediately took a dig at it and shared a post in which he wrote grok With a hint on GPT Builder.
“GPT can save a lot of effort:” he said.

Musk apparently didn’t like the jab and responded with a longer message, “GPT-4 is as fun as a submarine’s screendoor.”



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