It's Maruti vs everyone else in CAFE (Corporate Average Fuel Efficiency)

India's automotive sector is witnessing a sharp divergence in views regarding the upcoming Corporate Average Fuel Efficiency (CAFE) norms, set to tighten from April 2027. At the heart of the debate is whether small cars, integral to the market, should receive exemptions. Market leader

Suzuki India advocates for leniency, arguing its sub-1000 kg vehicles inherently emit less carbon dioxide. This stance, however, faces strong opposition from several prominent manufacturers. Homegrown SUV specialist leads the counter-argument, asserting in a recent letter to the Ministry of Road Transport and Highways that small cars, while comprising 60% of passenger vehicle sales, contribute 53% of the industry's CO2 emissions. Mahindra contends that granting concessions would stifle innovation in fuel efficiency for this segment and jeopardize India's ambitious target of 30% electric vehicle adoption by 2030, stressing that global manufacturers deploy EVs across all vehicle sizes to meet emission goals. Other major players, including , Toyota Kirloskar Motor, and JSW MG Motor India, reportedly echo Mahindra's objections, highlighting a clear industry split on future emission regulations.