Major nations shield small cars in CAFE norms: Nomura

AT A TIME when passenger vehicle manufacturers are sharply divided over the corporate average fuel efficiency (CAFE) III norms that will kick in from April 2027, a new analysis by Nomura Research Institute (NRI) has come out in support of Maruti Suzuki India, highlighting that the current regulatory framework disproportionately penalises small, lightweight cars.

- NITIN KUMAR

According to NRI Consulting & Solutions India's study of global CAFE regulations, India's linear weight-based model imposes significantly stricter carbon dioxide (CO2) targets on smaller vehicles. In contrast, major auto markets like the US, China, Japan, South Korea, and the European Union use more balanced systems, such as footprint-based or piecewise linear models, that avoid overb