Tata Motors opposes exempting small petrol vehicles from CAFE norms

Leading car maker Tata Motors is against granting exemption to small petrol vehicles weighing up to 909 kg from the strict Corporate Average Fuel Efficiency (CAFE) standards, saying it would be detrimental for the growth of adoption of models based on sustainable technologies in the country.

In a letter to PMO, the Mumbai-based auto major said India's ability to innovate and leapfrog into technologies of the future is now starting to bear fruit, with EV adoption growing to reach nearly 5 per cent in passenger cars.

"In this context, we would like to highlight that the provision to grant relaxations/exemptions for petrol vehicles up to 909 kg weight not exceeding 1200 cc and length not exceeding 4000 mm, may result in diluting the focus on adoption of sustainable technologies," the company said in a letter to Shaktikanta Das in the Prime Minister's Office.

Relaxations based on vehicle weight may inadvertently incentivise OEMs to reduce weight at the cost of essential safety features, which can undo the hard-fought progress in vehicle safety achieved over the last few years, it said.

Therefore, "...we humbly request the government to not create any special category of cars based on size or weight for the purpose of providing concessions in CAFE, as it contradicts movement towards zero emissions technologies, vehicle safety, and level playing field," the letter said.

The government has released draft CAFE rules to regulate passenger vehicle fuel consumption and carbon emissions between April 2027 and March 2032. The proposed framework sets tighter fleet-wide targets for companies while offering relief for small petrol cars.

In the coming years, with continued policy stability and focus, India can become one of the leading manufacturers and users of zero emissions vehicles, it added.

CAFE limits are set at an overall OEM portfolio level, with the intent of driving OEMs towards incorporating sustainable technologies in their portfolios and providing relaxations to a specific sub-class of vehicles within an OEM's portfolio, reduces the need to incorporate sustainable technologies such as EVs in OEMs' portfolios, thereby undermining the national mission for EV adoption, Tata Motors said in the letter.