No consensus on CAFE relief, Siam tells BEE

Says 3-4 carmakers backed proposed exemption, 14-15 opposed

- DEEPAK PATEL

The Society of Indian Automobile Manufacturers (Siam) submitted its final comments to the Bureau of Energy Efficiency (BEE) last weekend on the draft CAFE-III and CAFE-IV norms, acknowledging that its members could not reach a consensus on a proposed weight-based exemption for small cars, Business Standard has learnt.

The BEE had issued the revised draft on September 25, following which Siam held nearly 45 days of intense deliberations with its members. During these discussions, three to four carmakers supported the exemption, one remained neutral, while the remaining 14-15 opposed it, said sources familiar with the matter.

A sharp divide within the auto industry over this issue has persisted since the beginning of the year, with no resolution in sight. “In its submission to the BEE, Siam noted there were ‘mixed views’ on the exemption for small cars and has effectively left the final decision to the BEE,” a source mentioned.

The Corporate Average Fuel Efficiency (CAFE) framework sets average carbon-dioxide emission targets that each automaker’s fleet must meet, measured in grams of carbon dioxide emitted per kilometre (g/km) for every model sold. If a company fails to meet these targets, the BEE can impose stiff penalties.