CAFE battle hots up: M&M counters Maruti on relief

Industry divide complicates govt's efforts to finalise new fuel-efficiency norms

- DEEPAK PATEL

Soon after Maruti Suzuki (MSIL) sought relief under the Corporate Average Fuel Efficiency (CAFE) norms, citing lower emission by small cars, Mahindra & Mahindra (M&M) has hit back. Small cars account for over half of carbon dioxide (CO2) emissions from all passenger vehicles (PVs) in India, and giving them relief from the upcoming CAFE norms would undermine the country's global competitiveness, Mahindra & Mahindra has told the Ministry of Road Transport and Highways, it is learnt.

M&M's July 9 letter to the ministry, in response to the relief sought by MSIL under the CAFE-III and CAFE-IV regimes, indicates the deep divide in the auto industry. The growing rift between MSIL and rival automakers has complicated the government's efforts to finalise the CAFE norms.

According to sources, the Bureau of Energy Efficiency (BEE), under the Ministry of Power, is in the final stages of drafting CAFE-III and CAFE-IV but wants to ensure the framework is seen as balanced and equitable. CAFE-III and CAFE-IV regimes are scheduled to be implemented between April 2027 and April 2037.

Earlier this month, MSIL Chairman RC Bhargava had said small cars emit less per passenger, use fewer materials, and consume less fuel and claimed that rival carmakers are opposing concessions out of self-interest, rather than the country's priorities.

CAFE norms set CO2 emission limits (in grams per kilometre) for automakers' fleets, effectively pushing manufacturers to improve fuel efficiency and adopt cleaner technologies. CAFE-II norms are currently in force, while the upcoming CAFE-III and CAFE-IV norms will be significantly stricter.