The Indian government is planning to soon implement CAFE (Corporate Average Fuel Efficiency) 3 norms in the country. This aims at making Indian passenger vehicles less polluting.
As and when the new norms
(CAFE 3) become effective, vehicle manufacturing companies will be required to make vehicles that produce less pollution and are more eco-friendly.
They are aligned with India’s climate goals under the Paris Agreement. The earlier norms have done the same job in the country.
5 Things You Should Know About:
1. What Is CAFE 3?
CAFE 3 is the next phase of fuel efficiency rules for passenger vehicles in India. It is expected to become effective around 2027. It will further reduce the average CO2 emission limit per km.
2. How it affects car makers
Car companies will be bound to make new vehicles in line with C02 emission norms. Violating the norms will attract heavy financial penalties.
Every car company must meet an average emission target. If they sell more SUVs (which emit more), they must balance it with EVs or efficient cars.
3) CAFÉ 1 vs CAFÉ 2
CAFE 1 was implemented between 2017 and 2022 with CO2 emission target of 130 grams per kilometer.
Followed the expiry of CAFE 1, the next phase of fuel efficiency reforms became effective – CAFE 2. It has become effective from 2022 and will remain active until 2027. It reduced the CO2 target to 113 grams per kilometer.
4) CAFE 3 – What It Means For Customers
The new norms might increase the cost of petrol and diesel prices, as companies will be required to upgrade the existing technologies to reduce C02 emission. However, it will nudge customers to purchase an electric vehicle.
Companies like Tata Motors, Mahindra & Mahindra and Maruti Suzuki are already investing heavily in EV and hybrid platforms.
5) Why CAFÉ 3 Is Important
CAFE will ensure to make the industry less polluting, promote environmentally friendly vehicles, and lower fuel imports.
