Overview
- Draft CAFE-III rules add a 3 g/km deduction for petrol cars up to 909 kg, under 4 metres, and 1,200 cc or less, citing limited efficiency gains in that segment.
- Tata Motors, Hyundai, Mahindra & Mahindra, and JSW MG have asked the government to drop the weight-based relief, calling the 909 kg cutoff arbitrary and warning of safety and competition concerns.
- Industry correspondence reviewed by media indicates Maruti Suzuki would benefit most; Maruti counters that small cars already emit less, says 16% of its sales are below 909 kg, and warns unrealistic targets could force discontinuations.
- The draft also tightens fleet-average CO2 limits (reported toward 91.7 g/km from 113 g/km), shifts to WLTP testing, and revises super-credits to accelerate cleaner powertrains.
- SIAM has flagged broader issues, including counting BEVs as 29 g CO2 and steeper fleet targets, and the proposal remains under inter-ministerial consultation with no final notification yet ahead of a planned April 2027 start.