CAFE-III to kick in from April 2027

PTI

New Delhi

Automobile manufacturers will have to comply with stricter fuel efficiency norms from April 1 next year, as the government is unlikely to extend the deadline for the implementation of the Corporate Average Fuel Efficiency (CAFE) III standards, Additional Secretary in the Heavy Industries Ministry Hanif Qureshi said on Monday.

Qureshi said the need to extend the implementation deadline beyond April 1, 2027, may not arise, as the government has been in touch with auto industry stakeholders and has sought their feedback regularly. The CAFE III norms are proposed to be effective from April 1, 2027, to March 31, 2032. Differences persist among auto manufacturers on the rules. Small car makers argue that leniency must be granted to them on the basis of weight and affordability. However, large original equipment manufacturers (OEMs) are opposed to differential treatment, saying it would compromise safety features. While the likes of Maruti Suzuki and Toyota Kirloskar want small cars to be granted benefits, others like Tata Motors, Mahindra, Hyundai and Kia are against it.

The government has called a high-level meeting on April 16 to deliberate upon the draft CAFE III norms. The secretaries of line ministries, including power, heavy industries and road transport and highways, are expected to take a consensual view before implementing the rules.