India Proposes Relaxing Fuel Efficiency Norms for Small Cars 🚗

India's Bureau of Energy Efficiency has proposed relaxing the stringent Corporate Average Fuel Efficiency (CAFE) norms for a specific category of small petrol cars. This move is a departure from previous industry consensus, which applied uniform weight-linked CO2 emission limits to all passenger vehicles under 3,500 kg. Benefiting Small Petrol Cars: The new draft rules offer leniency for petrol cars weighing 909 kg or less and measuring under four meters in length. These cars will be eligible for additional carbon saving benefits due to their "limited potential for efficiency improvements," effectively easing the pressure on manufacturers to electrify them to meet overall fleet targets. Boost for

: The proposal sent shares of small car market leader Maruti Suzuki to a record high, as the company dominates this segment with popular models like the Alto-K10, Wagon-R, Celerio, and Ignis, which stand to gain the most from the relaxed standards. Controversy and Next Steps: The proposed leniency has faced pushback from some rival carmakers who argue that it could give Maruti Suzuki an unfair advantage in the world's third-largest car market. The draft rules are now open for stakeholder comments for 21 days before being finalized and implemented for a five-year period starting April 1, 2027.