Archive · 18 Sep 2025
Industry Deadlock Delays New Fuel Efficiency Norms in India
India's government is trying to make cars and trucks use less fuel to reduce pollution.
The rules are called CAFE 3 and CSFC.
The government's energy efficiency agency, the BEE, wants to set these new rules.
However, the auto industry group, SIAM, is taking too long to agree.
Some car companies want special treatment for small cars and commercial vehicles.
The BEE is unhappy with the slow progress, as the industry is not agreeing.
The main aim is to cut down on emissions.
The new rules should start by 2027.
The industry is divided and that's why the regulations are facing issues.
Negotiations between the BEE and SIAM have stalled on new fuel efficiency norms.
The CAFE 3 norms aim to reduce average vehicle emissions to 91.7 g/km by April 1, 2027.
SIAM has been slow to submit feedback and has internal disagreements.
Disputes include potential exemptions for small passenger and commercial vehicles.
The BEE is frustrated with SIAM’s lack of cooperation on finalising the regulations.
- Who
- The Bureau of Energy Efficiency (BEE) and the Society of Indian Automobile Manufacturers (Siam).
- What
- Stalled negotiations over new fuel efficiency norms (CAFE 3 and CSFC) for vehicles in India.
- When
- The final CAFE 3 norms were expected this month; CSFC feedback was requested within 30 days of July 28.
- Where
- India
- Why
- Disagreements within the auto industry and with the BEE over implementation details are delaying the finalization of emission standards.
Government/Environmental Concerns
Automobile Industry Concerns
Small Vehicle Exemptions
Government/Environmental Concerns
Some advocate for exemptions for small commercial vehicles and potentially small cars.
Automobile Industry Concerns
Others believe such exemptions are not appropriate and could hinder emissions reductions.
- Norms in effect
- April 1, 2027
- CAFE 3 Target
- 91.7 g/km average emissions
- Draft Release (Passenger Vehicles)
- June of Last Year
- CSFC Draft (Commercial Vehicles)
- July 28