Auto industry body SIAM says it is reviewing draft CAFE III fuel efficiency norms and will consult members on how manufacturers can meet the proposed implementation timeline. SIAM President Shailesh Chandra declined to comment on potential incentives for small cars, noting manufacturers are split on the idea. SIAM also argues for an enabling environment for EV adoption rather than strict mandates.
Indian automakers have approved the draft CAFE III proposals, which will tighten fuel-efficiency and CO2 limits for passenger cars from April 1, 2027. SIAM says the rules strike a workable balance, while manufacturers must steadily improve fleet emissions through 2031-32. The government is expected to issue the final notification soon, with broad industry consensus already in place.
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CAFE III fuel-efficiency standards for auto makers are set to start April 1, 2027, with the government unlikely to extend the deadline. Automakers are already discussing the upcoming norms, and a high-level meeting on April 16 will aim to lock in the framework. The rules include flexible compliance and carbon credit trading, reshaping how companies meet targets.
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