Proposed new CAFE norms spark a big vs small car debate in India

Throw tax rates, complex regulations and shifting demand into the mix, and things start to get complicated for automakers

When new emission norms came into force in April 2020, many automakers took older models off the market, realising that upgrading these ageing cars to new lower-emission engines would put them beyond the pockets of buyers.

 

Back in 2020 it was the Bharat Stage-6 or BS6 norms that got carmakers worried. This time around, the proposed introduction of new Corporate Average Fuel Efficiency or CAFE norms — particularly a proposed weight-based carve-out for smaller cars — has sparked an industry-wide debate.

 

While BS-6 caps pollutants per vehicle, CAFE limits average carbon dioxide emissions across a manufacturer’s entire fleet. Both have