Maruti Suzuki Proposal To Ease CAFE 3 Norms For Small Cars Under 1000 Kg Rejected By Brands Like Mahindra & Tata
Maruti Suzuki has proposed to ease the CAFE 3 Norms for compact cars. However, brands like Mahindra, Toyota and Tata have rejected their proposal. CAFE 3 or Corporate Average Fuel Efficiency, 3rd Edition, standards will be coming into effect from 2027.
The Ministry of Heavy Industries has consulted the automotive brands to submit their views based on the meetings held on June 17. Four major carmakers have written to the industry body of Society of Indian Automobile Manufacturer. The manufacturers have opposed to easing of the norms for small cars under 1000 Kg.
According to Maruti Suzuki, the stringent norms have made compact cars more expensive for entry-level buyers. The other car manufacturers argue that the decline in small car sales is due to the changing consumer preferences in favour for bigger cars.
Currently, compact cars don’t have a fuel efficiency norms under the CAFE 2 standards, which came into effect in 2017. The current norms say that cars weighing under 3500 Kg shouldn’t emit more than 113 grams of carbon dioxide per Km. This means that some models can have higher fuel emissions if the automaker has other fuel efficient options.
The companies argue that this can disrupt business plans amid an increased consumer preference for bigger vehicles. Notably, the demand for small cars has fallen 35% per year between 2016-17 and 2024-25. It remains to be seen how the CAFE 3 norms impact the automotive industry.
