Automakers may form a pool to meet CAFE norms: BEE

Designated 'pool manager' will be responsible for paying any penalties imposed

- DEEPAK PATEL

An automaker having difficulty in meeting standards on corporate average fuel economy (CAFE) will be allowed to form a pool with up to two other manufacturers, according to the draft notification of the new fuel-efficiency rules.

This gives flexibility in compliance but puts penalties squarely on the designated manager of such a pool should norms are not adhered to.

The move is expected to help companies with less fuel-efficient portfolios — such as those relying heavily on petrolor diesel-run sport utility vehicles — as they will be able to combine their performance with manufacturers offering greener vehicles such as electric cars. This is the first time that such a provision is being introduced in CAFE norms.

The Bureau of Energy Efficiency (BEE), which works under the Ministry of Power, on Thursday issued draft CAFE-3 and CAFE-4 norms, which will come into effect in April 2027 and will remain in place till March 2037.