New Delhi, Sept 30 (SocialNews.XYZ) Automobile and biofuel industry representatives on Wednesday welcomed the government's notification of Corporate Average Fuel Economy (CAFE)-III norms for passenger vehicles and said that the framework provides regulatory certainty, supports cleaner technologies and will accelerate India's transition to sustainable mobility.
Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the industry appreciates the new regulation, describing it as a structured roadmap with ambitious annual targets and a market-based compliance mechanism.
According to Agarwal, the framework will help reduce fuel consumption from new passenger vehicle fleets while allowing automakers to pursue different technology routes and offer consumers multiple choices. He added that the clear roadmap would enable manufacturers to plan investments and accelerate innovation.
Agarwal also welcomed the government's consultative approach in framing the regulation, saying it balanced various clean-technology options while providing long-term predictability for the sector.
Similarly, All India Distillers' Association (AIDA) President Vijendra Singh said the notification was a positive development for both the automobile and biofuel industries.
He said the recognition of ethanol and flex-fuel vehicles through carbon-neutrality benefits and super-credit provisions provides greater policy visibility for biofuels and clearer planning signals for automakers.
Singh said the framework creates opportunities for growth in India's ethanol ecosystem and strengthens the link between biofuels and the country's clean mobility ambitions. He added that efforts should now focus on expanding flex-fuel vehicle availability, fuel infrastructure and consumer awareness.
Meanwhile, Deloitte India Partner and Auto Sector Leader Rajat Mahajan said the norms provide a clear direction for the industry over the next five years and reinforce the transport sector's role in reducing pollution.
Mahajan said automakers could benefit by increasing adoption of electric, hybrid, alternative-fuel and fuel-saving technologies, although compliance would require significant investments and careful product planning.
He added that the framework is likely to accelerate India's new-energy vehicle transition, with credit trading offering flexibility to companies that fall short of targets.
The new CAFE norms that were notified by the goverment will come into effect from April 1, 2027 and remain applicable until March 31, 2032.
Moreover, the framework mandates progressively tighter fuel-efficiency targets for passenger vehicles over the five-year period while offering manufacturers multiple compliance pathways.
Source: IANS
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