Archive · 21 Nov 2025
India's CAFE 3 Norms Spark Small vs Big Car Debate
India wants cars to be more fuel-efficient, but some car companies say this will make small cars too expensive.
They want the rules to be fairer to smaller cars.
Other companies are fine with the current rules.
Some countries have different rules for small and big cars.
India plans to tighten fuel-efficiency rules under CAFE 3 from FY28
Carmakers divided over treatment of small and large vehicles
Small car manufacturers argue for relaxed norms due to thin margins
Tata Motors supports current norms, Maruti Suzuki opposes them
Global jurisdictions have relaxed norms for smaller cars
- Who
- Indian car manufacturers, consumers
- What
- Debating fuel-efficiency norms under CAFE 3
- When
- Expected to kick in from FY28
- Where
- India
- Why
- To reduce emissions and improve fuel efficiency
Small Car Manufacturers
Tata Motors
Treatment of Small Cars
Small Car Manufacturers
Argue for relaxed norms due to thin margins and limited room for costly technologies
Tata Motors
No concerns in meeting CAFE norms, opposes weight-based definition of small cars
- Current CAFE Phase
- CAFE 2 (2022-23)
- Proposed CAFE Phase
- CAFE 3 (FY28 onwards)
- Formula for CAFE 3
- [0.002 x (W - 1170) + c] petrol-equivalent litres per 100 km
- Weight-based constant (W)
- 1,170 kg
- Multiplier constant
- 0.002
- Yearly changing constant (c)
- Decreases from 3.7264 in FY28 to 3.0139 in FY32
