New Delhi: The Society of Indian Automobile Manufacturers (SIAM) on Wednesday welcomed the Government’s notification of Corporate Average Fuel Economy (CAFE) III regulations for passenger vehicles, saying the framework would provide a structured roadmap for the automobile industry from April 1, 2027.
SIAM President Shenu Agarwal said the CAFE III regulation lays down aggressive annual targets for the next five years, along with a market-based compliance mechanism.
“The automobile industry appreciates and welcomes the release of CAFE III Notification for Passenger Vehicles by Government of India from 1st April 2027 onwards,” Agarwal said in a statement.
He said the regulation would help reduce overall fuel consumption from the new passenger vehicle fleet while providing the industry an opportunity to pursue different technology pathways and offer multiple choices to consumers.
According to Agarwal, the CAFE III framework would also provide greater predictability to automakers, enabling them to plan investments and accelerate innovation.
“This will not only ensure reduction of overall fuel consumption from new Passenger Vehicle fleet but also provide an opportunity to the industry to work on various technology pathways providing multiple choices to the consumers,” he said.
Agarwal said the regulatory framework would play an important role in the country’s journey towards achieving the Viksit Bharat 2047 vision.
He also thanked the government for adopting a detailed and transparent consultative approach while framing the regulation.
“We are thankful to Government of India for detailed and transparent consultative approach in framing this critical and forward-looking regulation after undertaking an objective and balanced assessment of various clean technology options,” Agarwal said.
