Automakers seek early clarity as deadline nears for tougher CAFÉ norms: Tata Motors PV MD

Tata Motors

• Automakers urge government to finalize stricter CAFÉ norms before April 2027
• Delay in notification risks complicating compliance and investment planning
• Industry seeks clarity on tighter fuel efficiency and emission targets

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With just over a year to go before India’s most stringent vehicular emission regulations come into force, automakers are pressing the government to urgently notify the final Corporate Average Fuel Efficiency (CAFÉ) norms, citing the need for certainty to plan investments and product strategies.

The next phase of CAFÉ norms, scheduled to take effect from April 2027, will significantly tighten fuel efficiency and emission targets for passenger vehicles. As the clock ticks down, manufacturers say delays in finalising the rules could complicate compliance planning across powertrain development, sourcing and product launches.

The Society of Indian Automobile Manufacturers (SIAM), the industry’s apex body, had submitted a formal representation to the government in November 2025, seeking clarity and recalibration on certain aspects of the proposed norms. The submission highlighted challenges around technology readiness, cost implications and transition timelines.

Union road transport and highways minister Nitin Gadkari, addressing industry concerns on January 23, had assured automakers that the government would finalise the CAFÉ norms by the end of the month. However, companies are still awaiting the final notification.

“A representation has gone to the Bureau of Energy Efficiency (BEE). There have been one or two discussions at the SIAM secretarial level for more clarification, and we are awaiting the final notification,” said Shailesh Chandra, managing director and chief executive officer of Tata Motors Passenger Vehicles, in an interaction with Moneycontrol on February 5.

Chandra underlined the growing urgency within the industry as manufacturers work backwards from the 2027 deadline. “Since we have to take action based on what the final target would be, of course there is definitely a sense of urgency among us. We are waiting for the realisation of this to happen as soon as possible,” he said.

Automakers typically require multiple years to redesign platforms, introduce electrified powertrains, optimise engine efficiency and localise advanced technologies to meet tighter fuel economy norms. Any uncertainty over final targets, industry executives say, risks either over-investment or under-preparedness.

The upcoming CAFÉ phase is expected to push higher adoption of hybrid and electric technologies, lighter vehicle architectures and improved internal combustion efficiency. However, the cost burden of these changes, especially in price-sensitive segments, remains a key concern for manufacturers.

With 13 months left before the norms take effect, industry players are hoping the government will move quickly to provide regulatory clarity, allowing them to align product roadmaps and capital allocation decisions with confidence.