CAFE-III tightens fleet-wide emission targets, pushing manufacturers toward better design and cleaner technologies between FY28 and FY32
Uniform absolute cuts mean lighter cars must reduce emissions more sharply, making compliance costlier for hatchbacks than for heavier SUVs
A proposed relaxation for sub-909 kg cars with small engines has divided automakers, with SUV makers opposing what they see as unfair treatment
Small-car exemptions align with urban goals: SUVs crowd roads, worsen congestion, and contribute to idling emissions that degrade city air quality
Critics warn weight-based relief may prompt manufacturers to skimp on safety elements that add mass, a concern in a country with high road fatalities
A shift toward incentivising electric and hybrid hatchbacks may better balance safety, efficiency, and environmental goals than weight-linked exemptions