Auto manufacturers are planning to urge the government to ease the proposed Corporate Average Fuel Efficiency (CAFE) 3 norms for 2027–2032. They want a single, fixed target instead of the yearly reduction plan suggested in the draft proposal.

The CAFE 3 norms require manufacturers to progressively reduce fuel consumption from 3.73 litres per 100 km in FY28 to 3.01 litres by FY32. Industry players say this staggered approach makes product planning difficult and raises costs. They argue that while the final target can technically be met, reaching it at one go would be steep and expensive.

“The 3.01-litre target is quite tough to meet, especially from the first year. A fixed, achievable target will help us plan better,” said an executive at a leading automaker.

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