Siam backs CAFE-3 draft, urges govt to notify norms soon amid time crunch

Auto industry body SIAM supports latest CAFE-3 draft norms, urges quick notification as limited time remains for implementation ahead of April 2027 rollout

The Society of Indian Automobile Manufacturers (Siam) on Thursday endorsed the latest draft of corporate average fuel efficiency-3 (CAFE-3) emission norms and told the government that it should be notified quickly, as there is limited time available to implement it, Business Standard has learnt. 

The view was conveyed by Siam President Shailesh Chandra, during a meeting on Thursday between Siam members and officials from the Ministries of Power, Road Tran­s­port and Highways, Heavy Industries and Petroleum and Natural Gas. 

CAFE norms set a fleet-wide limit on the average carbon dioxide emissions, measured in grammes per kilometre (g/km), for all passenger vehicles (PVs) sold by a carmaker in a year. CAFE-2 is currently in force and CAFE-3 will come into effect starting April 2027 for a period of five years.  

The consultation on CAFE-3 norms has been underway for the past couple of years, with the issue of special relief for sub-909 kg cars emerging as the primary sticking point. The Bureau of Energy Efficiency (BEE), in its April 10 draft shared with Siam, did not keep any separate carve-out for sub-909 kg vehicles, but provided relief through changes in the main mathematical formula, which is used to determine emission limits for each carmaker. 

The meeting, chaired by Pankaj Agarwal, Secretary at the Ministry of Power, included a presentation by the BEE.  

The issue of a special exemption for small cars resurfaced, with three carmakers raising the issue of carve-out for sub-909 kg cars. This carve-out was part of the September 2025 draft of CAFE-3, but was removed in later versions after strong opposition from most other automakers. 

Other manufacturers opposed them stating that concerns around small cars have already been addressed through changes done to the main mathematical formula in the April 10 draft.