SIAM reviews CAFE-III rules, to assess industry readiness

New Delhi: The Society of Indian Automobile Manufacturers (SIAM) on Tuesday said it is reviewing the draft Corporate Average Fuel Efficiency (CAFE-III) norms and will soon consult its members to assess preparedness and finalise its stance on the implementation timeline.

Addressing a press conference, SIAM President Shailesh Chandra said the industry body will hold discussions with the Bureau of Energy Efficiency (BEE) in the coming days to arrive at a constructive view.

Chandra declined to comment on proposed incentives for small cars, noting that manufacturers remain divided. Smaller carmakers such as Maruti Suzuki and Toyota Kirloskar Motor have sought leniency in the norms, citing affordability and weight considerations. However, larger players including Tata Motors, Mahindra & Mahindra, Hyundai Motor India and Kia India oppose differential treatment, arguing it could compromise safety standards. “We are reviewing the revised draft and will take a position after assessing the readiness of all OEMs,” Chandra said, adding that no final view has been taken yet.

The comments come after Hanif Qureshi, Additional Secretary in the Ministry of Heavy Industries, indicated that stricter fuel efficiency norms are likely to take effect from April 1, 2027, with no extension expected.

On Delhi’s proposed EV policy mandating electric two- and three-wheelers in phases, Chandra said SIAM favours an enabling ecosystem over mandates, stressing the need for incentives and improved charging infrastructure to drive natural consumer adoption.