15 ‘no; 2 ‘yes’ votes: CAFE relief for small cars leaves industry divided

Mercedes-Benz was “neutral”, Toyota was “for consensus”, Maruti Suzuki India (MSIL) and Renault said “yes”, and the remaining 15 carmakers said “no” when asked to give their final vote on the proposal to allow a weight-based exemption for small cars under the CAFE emission norms, Business Standard has learnt.

- DEEPAK PATEL

The final vote from all 19 carmakers was taken at the CEOs Council meeting of the Society of Indian Automobile Manufacturers (Siam) held on the evening of November 7. The next day, Siam submitted its final written comments to the Bureau of Energy Efficiency (BEE), stating that its members have “mixed views” on the issue of weight-based exemption for small cars.

The CAFE framework sets average carbon dioxide emission targets, measured in grams per kilometre (g/km), for each automaker's overall fleet. If a company fails to meet these targets, the BEE has the power to impose hefty penalties.

On September 25, the BEE issued a draft of the CAFE-3 and CAFE-4 norms — set to take effect from April 2027 for a period of 10 years — introducing a weight-based exemption for small cars for the first time. Under this draft, petrol vehicles weighing up to 909 kg, with engine capacity below 1,200cc and length under 4,000mm, will receive an additional 3g/km deduction in their declared carbon dioxide emissions.

This proposal has sharply divided the industry, a split that was evident during the CEOs Council meeting on November 7, said people familiar with the matter.