India plans to tighten fuel-efficiency rules under CAFE 3 from FY28, leading to debate within the auto industry regarding treatment of small vs. large vehicles.
The proposed framework uses a weight-based formula, requiring lighter cars to achieve steeper improvements in fuel efficiency compared to heavier SUVs.
Maruti Suzuki expressed concerns that CAFE 3 norms may disadvantage small cars, while Tata Motors stated they have no concerns about meeting the norms.
SIAM members have mixed views on allowing car models with specific characteristics to claim a further reduction of 3 g CO₂/km.
Detailed Insights:
The core debate revolves around the formula: (0.002 x (W – 1170) + c), where lighter cars face disproportionately stringent targets, potentially impacting affordability.
Companies with predominantly small car portfolios fear that strict targets could make entry-level cars unaffordable, shifting the market towards larger, pricier vehicles.
Some manufacturers suggest the proposed changes to CAFE will encourage "brick in the boot" strategies, where manufacturers will make bigger cars since the target for heavy cars is comparatively relaxed.
CAFE 3 norms allow certain car models to claim a further reduction of 3 g CO₂/km, but SIAM members have mixed views on the subject, with some wanting the reduction to be increased.
India's CAFE norms also propose a movement from MIDC to WLTP, which produces more accurate, real world measurements.
Key Concepts Involved:
CAFE (Corporate Average Fuel Efficiency): Regulations that mandate a minimum average fuel efficiency for a manufacturer's entire fleet of vehicles.
MIDC (Modified Indian Driving Cycle): A standard test cycle used to measure fuel efficiency and emissions of vehicles in India.
WLTP (Worldwide Harmonised Light vehicles Test Procedure): A global harmonized standard for testing the emissions and fuel consumption of light-duty vehicles.