Tata SierraTata Motors, which has been one of the key proponents of stringent emission standards in the country, and dominates the EV segment with nearly 40 per cent market share, says it is comfortable meeting the upcoming Corporate Average Fuel Efficiency (CAFE)-3 norms.
These norms, which will determine the average fuel efficiency of an OEM at its portfolio level, will be a step-up from the existing CAFE 2 standards that require companies to limit their fleet-level CO2 emissions at 113gm per kilometre.
The tighter CAFE-3 standards are set to be implemented from April 1, 2027 and will remain in force till March 31, 2032.
Speaking to ETAuto at the launch of the much-awaited Tata Sierra, Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles, said, “‘We are comfortable when it comes to CAFE-3 norms. Even with the level of penetration we have in EVs today, we will be safe in CAFE-3 to a great extent.”
“Our (multi) technology strategy of CNG, diesel and electrics, is helping us overcome the future challenges. And this is how it was designed to be,” he added.
The Tata Motors top executive who is also the incumbent president of the Society of Indian Automobile Manufacturers (SIAM) has been vocal about having unbiased regulatory standards across vehicle segments when it comes to CO2 norms.
His comments assume significance given that the CAFE-3 norms — which are based on vehicle weight — have divided the auto industry, particularly between manufacturers of small cars and those with portfolios dominated by heavier SUVs. According to a recent report, SIAM has said that “a few OEMs have not reached a consensus on small cars”.
Powertrain roadmap
He also outlined the future powertrain roadmap the Indian market could see by 2030. According to Chandra, “While diesel might slowly come down from 15 per cent to 10 per cent or below, progressively, CNG will certainly move from the current 20 per cent levels to 25-30 per cent.” “I believe EVs should comprise 15-20 per cent of the market, whereas the remaining should be petrol-based products including flex-fuel powertrains. Having said that, it is very difficult to predict for the industry because it depends upon how each player adopts different technologies,” he added.
Despite having indicated interest in the past towards developing hybrid powertrains for its passenger vehicle line-up, Chandra mentioned that he has always maintained being proactive on electrics, and reactive on hybrids.
“Many companies use hybrids to replace diesels or to meet CAFE norms. At Tata Motors, we do not need it for both the reasons,” he said. “So, if there are certain segments where we see hybrids gaining customer appeal, we will enter there for competitive reasons. Otherwise, we do not have the desperation to enter the (hybrid) space. Therefore, while we will be ready with the technology, we will only enter when needed,” he pointed out.
Tata Motors, which is championing EVs in multiple vehicle formats and body styles, attributes the government’s PLI scheme to be acting as a key enabler in shaping a flourishing EV supply chain ecosystem in the country.
