SUVs are dominating the Indian roads now, but a significant regulatory shift is around the corner. The government is planning stricter carbon emission regulations that will hurt bigger vehicles the most. Carmakers and SUV consumers are in watchful mode with the new paradigm coming into effect by April 2027.
SUV Market Share and Emission Worries
SUVs are presently ruling the Indian auto industry with a market share of more than 55% in FY2025. Even as they are trendy, the cars turn out to be less efficient, leading to increased CO2 emissions. This disparity has caused new alarm among the auto industry players as the government focuses increasingly on green goals.
New CAFE III Regulations
The Indian government is gearing up to implement the third iteration of the Corporate Average Fuel Efficiency (CAFE) regulations from April 1, 2027. These regulations seek to regulate fuel use and carbon dioxide emissions from passenger cars. With the existing CAFE II laws in place, the maximum CO2 emissions per kilometer for manufacturers is capped at 113.1 grams. The new CAFE III will be much tighter.
The Bureau of Energy Efficiency (BEE) has proposed a target of 91.7g/km based on the WLTP test cycle. But automobile manufacturers have resisted with a suggestion of a marginally eased target of 92.9g/km based on India-specific MIDC standards.
New Structure Based on Vehicle Size
One of the major changes in the works is implementing emissions standards by vehicle size. Previously, CAFE regulations considered a manufacturer’s entire lineup as opposed to separate models. This permitted manufacturers to balance the emissions of big SUVs with compact fuel-sippers. The new model could bring an end to that flexibility by establishing distinct goals for big and small vehicles.
During a June 17 meeting between automobile representatives and the Ministry of Industry, this shift was debated at length. Officials are currently considering whether cars should be categorized by engine size, length, or other factors to determine their respective emission standards.
Possible Impact on Buyers
The proposed adjustments indicate that consumers who buy big, high-end vehicles such as SUVs would have to pay more. Government representatives feel that these consumers can pay a premium for the ecological cost of their cars. At the same time, small vehicles would get incentives or policy advantages, which would make them attractive to price-sensitive buyers.
Final Decision Still Pending
While negotiations are in full progress, the final call is still pending. The decision on the proposed framework will be taken by the Bureau of Energy Efficiency. One more round of meetings is scheduled this week to seal these crucial details.
Car makers are pressing for greater indulgence, particularly because of slower-than-anticipated uptake of electric vehicles in India. They contend that stringent regulations might discourage growth and add expenses in a vital period of transition.
Related Posts
Viraj Kumar
Author at TimesBull covering breaking news and current affairs.
Related Stories
Auto
Auto
Auto
Auto
Auto
Auto
Auto
Auto
Auto
Auto