No extension to 2022 deadline for new fuel efficiency norms

Tuhin Guha Updated: March 29, 2021, 10:38 AM IST

The Indian government's upcoming Corporate Average Fuel Efficiency (CAFE) norms, set for implementation in 2022, will not see a deadline extension. This comes after the Society of Indian Automobile Manufacturers (SIAM) has been lobbying for a two-year deferment in implementing these norms.  Although, government representatives have stated that there could be some concessions made if serious intent is seen from carmakers in investing in cleaner technology.

Photo by Matt Boitor on Unsplash

The auto industry has argued that a slump in sales up to 2019, followed by the significant dip in sales in 2020 due to the COVID19 pandemic has led to dwindling profits. This makes it for auto firms to invest in newer technology needed to achieve the CAFE norms.

The CAFE norms were first introduced on April 1, 2017, with petrol, diesel, CNG and LPG vehicles having to meet a carbon dioxide emissions target of 130 g/km until 2022. From April 2022, this target will be reduced to 113 g/km. Effectively, vehicles will need to improve efficiency by 10 per cent or more by 2021 and by 30 per cent in 2022. This system is in line with the emissions standard put in place globally, where the weighted average of a manufacturer's sales volume is taken into consideration to calculate emissions. The BSVI norms introduced last year were a big step in moving towards these new targets, with the real-time emissions they are account for.

Source: Reuters