India’s commercial vehicle sector, which acts as the economic artery of the nation, is currently navigating a complex regulatory landscape. While manufacturers, including Tata Motors, are ramping up efforts in electrification and decarbonisation, the immediate challenge lies in defining the metrics for traditional internal combustion engines. This struggle came into sharp relief during Tata Motors’ recent financial briefing, where management detailed its unified industry stand on the proposed Corporate Average Fuel Economy (CAFE) norms.
CAFE norms require manufacturers to meet specific fleet-wide efficiency targets, a key policy lever used globally to curb carbon dioxide (CO₂) emissions. However, the commercial vehicle industry has argued that applying simple laboratory-based standards measures often designed for cars does not accurately reflect the rigorous and varied conditions under which trucks operate.
Vectoring Toward Reality
The crux of the industry’s counter-proposal centres on how efficiency should be calculated for medium and heavy-duty vehicles (MSCV/HCV). The industry body, the Society of Indian Automobile Manufacturers (SIAM), has reached a consensus and submitted a recommendation to the Bureau of Energy Efficiency and the Ministry of Road Transport & Highways.
Instead of adhering to standard mandates based on “constant speed fuel consumption norms,” the sector is advocating for the adoption of the Bharat Vector Tool. This tool, which management refers to as the Vehicle Energy Consumption Tool, is designed to offer a real-life representation of what kind of fuel is being consumed or what CO₂ is being emitted.
For large vehicles that traverse highly variable terrains and carry dynamic loads, this approach is deemed more accurate and effective. By measuring emissions based on real-life driving cycles rather than artificial constant speeds, the industry believes it can provide a more meaningful contribution to the ultimate goal of CO₂ reduction.
A Case for Exemption
The regulatory perspective shifts when considering the smaller end of the commercial spectrum—the light commercial vehicles (LCVs) and vehicles falling under the N1 category. Here, Tata Motors management confirmed that the industry has collectively sought a pragmatic exemption.
The rationale provided is based strictly on the segment’s minimal environmental footprint. The fuel consumption of these smaller vehicles, as a percentage of the total fuel consumed by the entire transport sector in the country, is less than 2%. Crucially, their total CO₂ emission contribution stands at less than 1% of the overall industry emissions.
Given this minor contribution to the overall carbon challenge, the industry body deemed it appropriate to request that the N1 category be exempted from the new fuel efficiency requirements.