Storm over CAFE

Car fuel efficiency norms should not chase illusory uniformity

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DEEP DIVIDE has emerged within the auto industry over the proposed Corporate Average Fuel Efficiency (CAFE) III norms, scheduled to take effect in April 2027. At the centre of the controversy is Maruti Suzuki's appeal for relaxed emission standards for small cars, which has drawn opposition from rival manufacturers who want the government to stick to a uniform CO2 target of 91.7 g/km across all passenger vehicles.

While a single emission benchmark may appear equitable on paper, the shifting auto landscape, from small hatchbacks to heavier sport utility vehicles (SUVs) and compact SUVs, and even electric vehicles, suggests that a one-size-fits-all approach may not be viable in practice. CAFE norms are essentially emission report cards that rate a carmaker's entire fleet, not individual models. Smaller, lighter cars like the Maruti Alto naturally emit less CO2 and have historically helped balance out emissions from larger, bulkier vehicles.