Why Indian Carmakers will FAIL the upcoming CAFE Norms

Yes, this might happen according to the recently updated energy conservation norms. All carmakers failing the upcoming CAFE emission norms will be fined. Going by the updates, If any carmaker fails the emission norms, they will be fined ₹25,000 per unit if the said carmaker’s testing fleet scores above the new 0-4.74 gms per km range.

• Additionally, if the emission score exceeds the 4.74gms limit, It is likely that the fine will be doubled to ₹50,000 per unit.
• In a more shocking instance, The energy conservation board is certain that most carmakers in India will likely fail the upcoming stringent CAFE (Corporate Average Fuel Economy) norms.
• Although, certain reports also suggest that brands like Maruti Suzuki India Pvt. Ltd, Tata Motors and Chinese-owned British carmaker MG will likely pass the CAFE norms with flying colours.

• However, Major brands like Renault, Nissan, Kia, Hyundai, Mahindra, and Toyota remain in danger.
• CAFE norms are being updated to push electric vehicle sales in India and to bring down the emission rate, which happens to be at its peak.
• CAFE score depends upon a brand’s sales of Hybrid/Electric vehicles.
• This indicates that brands that already have electric vehicles on sale in India will be more likely to have a fair CAFE score compared to brands like Nissan or Renault, which do not have any Electric vehicles in their India line-up.
• This initiative is also being taken to push the electric vehicle sale in the country.
• With the upcoming CAFE norms, carmakers also have to appear for the upcoming BS-VI Phase II norms, which will be put into effect along with the fuel economy norms from April 2023.

So what are your thoughts about the Government prioritising the sale of electric vehicles in India? Do let us know in the comment section below.