Shailesh Chandra, Tata Motors MD and CEO and SIAM President said the domestic auto industry is awaiting clarity on the next phase of Corporate Average Fuel Efficiency (CAFE) norms, with original equipment manufacturers (OEMs preparing to act swiftly once final targets are notified.
Speaking on the sidelines of Tata Motors PV Q3 results, Shailesh Chandra said the industry body Society of Indian Automobile Manufacturers (SIAM) had submitted a detailed representation to the government in November outlining industry concerns and recommendations.
“We have given a representation from SIAM in November to the government on CAFÉ 3, which incorporates multiple points from industry players, barring a few areas where views differ,” Chandra said. He added that the proposal is currently under discussion with the Bureau of Energy Efficiency (BEE), and the industry is awaiting the final notification.
SIAM’s Bid for Regulatory Clarity
The government released draft rules for the latest Corporate Average Fuel Efficiency (CAFE) standards last year in September, which will regulate passenger vehicle fuel consumption and carbon emissions between April 2027 and March 2032. CAFE norms play a critical role in shaping product planning, powertrain strategy and investment decisions for automakers, as compliance requires OEMs to meet fleet-level fuel efficiency and emission targets over defined timeframes.
Chandra said there is a growing sense of urgency among OEMs, given that actions can only be finalised once the regulatory targets are clearly defined. “Since we have to take actions based on the final targets, there is definitely a sense of urgency across OEMs to ensure that the numbers are not adversely impacted,” he said.
2027 Deadline
Industry executives have flagged that delayed clarity on CAFE norms can compress development timelines and raise compliance costs, particularly at a time when manufacturers are already investing heavily in new model launches, electric vehicles and capacity expansion. OEMs are looking to align their product roadmaps well in advance to avoid last-minute adjustments that could impact volumes or profitability.
