India’s Automakers Resist Strict 2027 Emission Rules

Indian automakers are resisting the government’s proposed Corporate Average Fuel Efficiency (CAFE) III norms, set to take effect from April 2027. These norms demand a one-third reduction in car emissions to 91.7g/km of CO2 under the Worldwide Harmonised Light Vehicles Test Procedure (WLTP). 

The Society of Indian Automobile Manufacturers (SIAM) argues that this target, a big leap from the current CAFE II limit of 113.1g/km, is overly ambitious and threatens the ₹11.44 lakh crore auto industry’s sustainability. 

Risks and Penalties

SIAM’s submission to the power ministry warns that the steep cuts could lead to billions of rupees in penalties, deter future investments, and jeopardise jobs in a critical manufacturing sector. 

The industry proposes a more gradual 15 per cent reduction or a 92.9g/km target under the less stringent Modified Indian Driving Cycle (MIDC), citing Europe’s struggles with similar aggressive timelines despite better EV infrastructure.

Rift Among Carmakers

A rift has also reportedly emerged within the industry, with Maruti Suzuki advocating for separate CAFE III norms for cars under 1,000kg, which could benefit its portfolio of 10 lightweight models, including the WagonR and Swift. 

Other manufacturers, such as Tata Motors, Hyundai, and Mahindra, oppose this, arguing that dual standards would increase costs for larger vehicles and favour Maruti disproportionately. SIAM maintains a unified stance, warning that splitting norms could disrupt regulatory coherence.

India, a major global emitter, faces pressure to meet climate goals under the Paris Agreement while ensuring affordability for its 1.4 billion citizens. Automakers urge a flexible roadmap to sustain growth in a market still reliant on internal combustion engines.

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