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Auto sector seeks full CAFE exemption for N1 light commercial vehicles
SIAM cites affordability, weak sales, minimal emissions and regulatory overload as reasons to exempt N1 segment from stricter fuel efficiency rules from April 2027
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SIAM’s formal submission to the government argued that the N1 segment has faced prolonged stress, with sales declining at a compound annual rate of 1.64 per cent between FY19 and FY25. | Representative Image
The Indian automobile industry has urged the Centre to completely exempt N1 light commercial vehicles (LCVs) from the new Corporate Average Fuel Efficiency (CAFE) norms that will come into effect in April 2027, sources told Business Standard.
This category of LCVs is defined as goods-carrying vehicles with a gross vehicle weight not exceeding 3.5 tonnes.
Last month, the Society of Indian Automobile Manufacturers (Siam) made the exemption request on multiple grounds. This included a prolonged sales slowdown in the segment, rising costs due to frequent regulatory changes, weak electric vehicle penetration in this category and limited access to affordable finance
