



CAFE-III: Small-car relaxations are still on the table
Subscribe to enjoy similar stories. NEW DELHI : The proposal of relaxing emission targets for small cars under the next phase of corporate average fuel efficiency, or CAFE-III, norms is still being discussed, power ministry secretary Pankaj Agarwal told Mint on Tuesday. “The relaxation for small cars has not been dropped.
It will be proposed through a different way by moderating the slope," said Agarwal on the sidelines of the launch of a report by a Niti Aayog panel that called for promoting entry-level cars in emission norms. The slope refers to a Cartesian graph containing a single line being used to set emissions targets for carmakers. Easing this slope can help relax the targets.
The proposal has already divided the industry on whether small cars deserve special consideration under the third iteration of the CAFE norms, set to come into force in April 2027 and are expected to be notified soon. Any relief, however, would be a boost for India’s largest passenger carmaker, Maruti Suzuki India Ltd, which believes such relaxations are necessary to keep small cars viable in the country. The transport decarbonization report has recommended that new fuel-efficiency regulations should push the adoption of small, entry-level cars as they are more efficient than larger models.
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