Maruti Suzuki's Confidence in CAFE-III
Maruti Suzuki India Ltd. is poised to continue its strong performance in fuel efficiency under the upcoming Corporate Average Fuel Economy (CAFE) Phase III norms, according to Rahul Bharti, Senior Executive Officer, Corporate Affairs, at Maruti Suzuki. The company has been a front-runner in efficiency during CAFE phases I and II, and Bharti expressed confidence in maintaining this leadership.
Bharti highlighted that the new regulations acknowledge the value of various powertrain technologies and fuel types, fostering multi-faceted research, development, and innovation within the automotive sector. He also noted that the inclusion of a credit or debit mechanism marks an improvement over the previous CAFE-II framework.
Understanding the CAFE-III Regulations
The CAFE-III norms are scheduled to come into effect on April 1, 2027, and will remain applicable until March 31, 2032. These comprehensive regulations were formulated after detailed scientific data analysis and extensive consultation with stakeholders and inter-ministerial bodies, setting ambitious targets for enhancing energy efficiency and reducing CO2 emissions.
The Ministry of Power stated that the revised target line has been flattened to ensure a more balanced, weight-sensitive approach. This means lighter vehicles will face relatively softer targets, while heavier vehicles will be subject to more stringent fuel efficiency requirements.
A key feature of the CAFE-III rules is the provision of substantial super credits for electrified vehicles. Battery electric vehicles (BEVs) and range-extended electric vehicles will receive a 3x volume factor. Plug-in hybrids and strong hybrids operating on flex-fuel ethanol will get a 2.5x factor, while strong hybrids qualify for 1.6x. Additionally, flex-fuel vehicles will benefit from a 1.1x factor.
Industry Welcomes New Framework
Other major players in the Indian automotive industry have also welcomed the government's approach. Shailesh Chandra, MD & CEO of Tata Motors Passenger Vehicles, lauded the consultative process that led to a framework combining ambitious fuel efficiency targets with market-based compliance mechanisms. Chandra emphasized that the continued recognition of zero-emission technologies reinforces the critical role of electrification in achieving India's long-term decarbonisation goals.
Shenu Agarwal, President of the Society of Indian Automobile Manufacturers (SIAM), also commended the release of the CAFE-III notification. Agarwal stated that the CAFE-III framework provides a clear and predictable roadmap with aggressive annual targets for the auto industry over the next five years. This not only ensures a reduction in overall fuel consumption from new passenger vehicle fleets but also enables the industry to explore various technology pathways, offering consumers a wider range of choices.
"The clarity and predictability provided by the framework will enable the industry to plan investments, accelerate innovation and offer customers an increasingly compelling range of cleaner mobility solutions," said Shailesh Chandra.
The new regulations are expected to drive significant investment and innovation as manufacturers strive to meet the evolving environmental and efficiency standards.