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Government may defer fuel efficiency norms for car companies amid lobbying. india news

Government may defer fuel efficiency norms for car companies amid lobbying

New Delhi: Amid lobbying by car companies, the government may defer the implementation of corporate average fuel efficiency norms (CAFE 3.0) beyond April 2027. The PM’s office has held two meetings during the last three weeks and more deliberations are planned on the issue to work out a formula that is acceptable to the industry and helps improve fuel efficiency and emissions.At a meeting at the PMO on Monday, the power ministry gave a detailed presentation on the proposed CAFE 3.0 norms, while highlighting the “urgent” need to notify the norms. For the first time, the ministry presented a detailed assessment of the expected performance of the country’s top five carmakers. It said that based on the proposed framework, which will be released only for public comment Tata Motors At the same time, we will be able to achieve the target between 2027-28 to 2031-32. Maruti Suzuki And Hyundai Motors India can’t make the cut.The presentation shows that Toyota-Kirloskar Motors will be able to meet the targets for the first three years, 2027-28 to 2029-30, while Mahindra & Mahindra will miss the targets in the first three years. “Keeping this in mind, the proposed system will impose higher penalties on companies that do not meet the target,” an official said.The CAFE 3.0 criteria propose removing the humiliation (additional allowance) or relief for small car manufacturers, while seeking to introduce RangeExtended Electric Vehicles (REEVs), which will have a Volume Derogation 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.“Given the current situation, it may take at least a few months to notify the norms. The industry will need at least a year to implement it,” said a person with knowledge of the matter.

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