Revised CAFE Norms Draft Out, Industry Reviewing Details: SIAM President

India’s automobile industry has begun reviewing a revised draft of the upcoming CAFE (Corporate Average Fuel Efficiency) norms, with the industry body expected to submit its position to the government shortly.

“There is a revised draft which has come, which we are reviewing. In the next one or two days, we are going to have a meeting… and then we will represent ourselves,” said Shailesh Chandra, President, SIAM, indicating that formal feedback from the industry is imminent.

He, however, declined to comment on the contents of the revised draft or the industry’s stance at this stage.

“Before that, no comment on what is in the draft or what is the position we are going to take,” he said.

Next Phase of Fuel Efficiency Norms under Discussion

The revised draft marks the latest step in the evolution of India’s fuel efficiency regulations, as policymakers and industry move towards the next phase of CAFE norms.

While SIAM did not disclose details, the new draft is expected to be part of ongoing consultations between the government and automakers on tightening fuel efficiency standards in line with India’s broader emissions and energy goals.

Industry stakeholders are expected to deliberate internally before presenting a consolidated view during upcoming meetings with the government.

Industry seeks calibrated transition

The development comes at a time when automakers are balancing multiple transitions, including stricter emission norms, electrification strategies and cost pressures.

SIAM has consistently maintained that regulatory changes should be implemented in a calibrated manner, aligned with market readiness, infrastructure development and consumer affordability.

In the context of electric mobility, Chandra reiterated that the industry favours creating an enabling ecosystem through incentives and infrastructure support, rather than relying solely on mandates, to drive adoption.

Policy clarity critical for investments

Clarity on timelines and regulatory pathways will be crucial for automakers as they align product portfolios, technology investments and compliance strategies.

The industry is expected to engage closely with the government over the coming weeks as discussions on the revised draft progress, with final norms likely to shape the next phase of India’s automotive transition.

Note: The current comments from SIAM pertain specifically to a revised draft under review, and the industry has not yet disclosed its position or any specific provisions under consideration.