BEE Issues Revised Draft Fuel Efficiency Norms CAFE 2027 For Small Cars

(MENAFN- KNN India) New Delhi, Sep 27 (KNN) The Bureau of Energy Efficiency (BEE) has released a revised draft of Corporate Average Fuel Efficiency (CAFE) norms for 2027, introducing a separate classification for small cars for the first time.

Under the draft framework, small cars will be eligible for additional concessions: on top of certified carbon dioxide (CO2) savings achieved through approved technologies, manufacturers can deduct an extra 3 gm/km from their declared emissions.

Industry observers noted that the provision could particularly benefit Maruti Suzuki India, the country's largest small car manufacturer.

The draft also provides incentives for flex-fuel vehicles and strong hybrids, expanding beyond conventional fuel efficiency measures.

Stakeholders, including automakers, have been given 21 days to submit their inputs or suggestions. The new CAFE standards will apply from April 2027 until March 31, 2032.

According to BEE, the revised norms incorporate feedback from original equipment manufacturers (OEMs), research institutions, testing agencies, multilateral organisations, and international bodies, following a series of inter-ministerial consultations.

The updated draft includes additional provisions covering testing cycles, derogation, and compliance procedures.

BEE had earlier issued the first draft of CAFE-3 and CAFE-4 norms in June 2024, to be implemented between April 2027 and March 2037.

The Society of Indian Automobile Manufacturers (SIAM) later recommended changes, while Maruti Suzuki had specifically requested relief measures for small cars.

Competitors such as Mahindra & Mahindra, Tata Motors, and Hyundai Motor India had opposed any special concessions.

(KNN Bureau)

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