India’s auto industry is facing internal conflict over new emission norms called Corporate Average Fuel Efficiency (CAFÉ) 3, which will be enforced from April 1, 2027. These rules aim to reduce car emissions and improve fuel efficiency.
Earlier, all carmakers had agreed to a single CO2 emission target of 91.7 grams per kilometre for passenger vehicles, down from 113 g/km in the current CAFÉ 2 norms. But a rift has now emerged within the Society of Indian Automobile Manufacturers (SIAM), the main industry body.
Maruti Suzuki, India’s top small carmaker, is pushing for a different set of emission norms for cars that weigh under 1,000 kg. The company argues that current rules favour heavier vehicles and unfairly punish lighter ones, even though they pollute less in absolute terms.
Maruti says that under existing rules, a small petrol car with 97 g/km CO2 fails the target, while a diesel SUV with 128 g/km CO2 passes. The company also pointed out that countries like the US, China, and Japan already have different rules for small cars.
Maruti believes this change won’t harm electric vehicle (EV) growth. The company says it will become the biggest EV maker in India within a year of its EV launch.
However, other car companies are opposing the move. They say allowing different rules will mostly benefit Maruti Suzuki and force others to spend more on tech upgrades.
An executive from another company said this proposal came up suddenly and wasn’t part of the original submission to the government. He feels it will lead to unfair advantages.
Union Minister Nitin Gadkari has called for a meeting with SIAM members on July 2 to discuss CAFÉ 3 norms, BS7 emission standards, vehicle categories, and old vehicle policies.
Models like Maruti’s Wagon R, Swift, Dzire, Eeco, and Fronx—all weighing less than 1,000 kg—form 65% of its domestic sales. Other light cars from brands like Tata, Hyundai, and Renault exist, but none of these companies have backed separate rules.
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