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Two global transport and road-safety organisations—the International Council on Clean Transportation (ICCT) and the International Road Federation (IRF)—have separately asked the Indian government to reassess further concessions under the upcoming Corporate Average Fuel-Efficiency (CAFE-III) norms.
The auto industry has argued that the revised norms remain too stringent and may affect sectoral viability.
What Are CAFE Norms?
- Corporate Average Fuel-Efficiency (CAFE) norms set mandatory limits on average CO₂ emissions per kilometre across an automaker’s entire fleet.
- It is a regulatory standard aimed at improving the average fuel efficiency of vehicles produced by an automaker.
- Primarily used to reduce fuel consumption, lower greenhouse gas emissions, and promote energy efficiency in the transport sector.
- Stricter norms push manufacturers toward cleaner technologies, including EVs, hybrids, and more efficient ICE models.
- India: Implemented through Bharat Stage (BS) emission norms and CAFE regulations, effective from April 2022 for passenger cars and commercial vehicles.
Purpose
- Energy Security: Reduces dependence on fossil fuels by lowering fuel consumption.
- Environmental Protection: Cuts greenhouse gas (GHG) emissions from vehicles.
- Technological Advancement: Encourages automakers to invest in fuel-efficient technologies, hybrid and electric vehicles.
- Economic Benefits: Lower fuel consumption reduces costs for consumers.