Automakers may form pool to meet CAFE norms under BEE draft rules

BEE has issued draft CAFE-3 and CAFE-4 norms allowing automakers to pool fleets with up to two others for compliance, with penalties falling on the designated pool manager

Automakers struggling to meet Corporate Average Fuel Economy (CAFE) standards will be allowed to form a pool with up to two other manufacturers, according to the draft notification of new fuel efficiency rules. The move offers flexibility in compliance but places penalties squarely on the designated manager of such a pool.

 

The provision is expected to help companies with less fuel-efficient portfolios, such as those relying heavily on petrol- or diesel-run sport utility vehicles, as they will be able to combine their performance with manufacturers offering greener vehicles such as electric cars. This is the first time that such an