Autobayng News Team
Hanif Qureshi“>
New Delhi: Automobile manufacturers will have to comply with stricter fuel efficiency regulations from April 1, 2027, as the government is unlikely to extend the implementation deadline for the Corporate Average Fuel Efficiency (CAFE) III norms, a senior official said on Monday.
According to PTI, Hanif Qureshi, Additional Secretary in the Ministry of Heavy Industries, said there may not be a need to push the deadline beyond April 1, 2027, since the government has remained in continuous consultation with industry stakeholders and sought feedback at regular intervals.
The CAFE III norms are proposed to be effective for the five-year period from April 1, 2027 to March 31, 2032, and are expected to require automakers to meet tighter fleet-wide carbon dioxide emission and fuel efficiency targets.However, differences continue within the industry on key provisions of the proposed norms. Smaller car manufacturers have argued that leniency should be granted under the framework based on vehicle weight and affordability. Large OEMs, on the other hand, have opposed differential treatment, citing safety and technology costs.Companies such as Maruti Suzuki and Toyota Kirloskar Motor have supported benefits for small cars, while Tata Motors, Mahindra & Mahindra, Hyundai and Kia have reportedly opposed special treatment.
Sources told PTI that the government has called a high-level meeting on April 16 to deliberate on the draft CAFE III framework. Secretaries from line ministries including Power, Heavy Industries and Road Transport & Highways are expected to participate to reach a consensus before finalising the norms.
The draft CAFE III framework is also expected to introduce a more flexible compliance mechanism. It proposes easing penalty provisions and allowing automakers that exceed emission reduction targets to trade surplus carbon credits with manufacturers that fall short, based on mutual agreements.
Additionally, the draft proposes that OEMs may be allowed to offset debit balances by purchasing credits directly from the Bureau of Energy Efficiency (BEE), according to sources.
The final notification is expected after stakeholder consultations and inter-ministerial deliberations.
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