India will not extend an April 2022 deadline to tighten fuel efficiency standards, in a setback for carmakers which are lobbying for more time, government and industry sources said.
The Corporate Average Fuel Efficiency (CAFE) requirements are designed to reduce carbon emissions from vehicles as India pushes auto manufacturers to invest in more cleaner technologies like electric, biofuels or compressed natural gas or fuel-efficient cars.
“The deadline to meet CAFE norms will not be extended,” a senior government official said, adding that some concessions could be considered if it sees serious intent by the automakers to invest in clean technologies.
The push to delay the rules by two years is being led by the Society of Indian Automobile Manufacturers (SIAM), an industry group that represents major carmakers in India including top sellers Maruti Suzuki and Hyundai Motor.
Automakers in India including Maruti, Hyundai, Tata Motors, Volvo and Ford Motor are closest to meeting the April 2022 target, according to auto consultancy JATO Dynamics’ CAFE report, whereas Mahindra, Toyota Motor and Stellantis have more ground to cover.
JATO’s analysis is based on fuel efficiency data provided by auto makers or road transport ministry guidelines.
