Tata Motors said CAFE limits are set at the overall original equipment manufacturer (OEM) portfolio level to encourage companies to incorporate sustainable technologies across their line-ups.Tata Motors has urged the government not to grant exemptions to small petrol vehicles under the proposed Corporate Average Fuel Efficiency (CAFE) standards, arguing that such relaxations could weaken the push towards cleaner technologies and vehicle safety.
In a letter to the Prime Minister’s Office, seen by PTI, the carmaker said allowing concessions for petrol vehicles weighing up to 909 kg, with engine capacity not exceeding 1,200 cc and length under 4,000 mm, would dilute the focus on the adoption of sustainable technologies.
The company said India has begun to see results from policies supporting newer technologies, with electric vehicle (EV) adoption in passenger cars reaching nearly 5 per cent.
“Granting relaxations or exemptions for petrol vehicles in this category may result in diluting the focus on adoption of sustainable technologies,” Tata Motors said in the letter addressed to Shaktikanta Das at the PMO.
Safety and technology concerns
Tata Motors warned that exemptions based on vehicle weight could encourage manufacturers to reduce weight at the expense of safety features.
“Relaxations based on vehicle weight may inadvertently incentivise OEMs to reduce weight at the cost of essential safety features, undoing progress made in vehicle safety over the past few years,” the company said.
It added that creating special categories of cars for CAFE concessions would run counter to efforts to promote zero-emission technologies and maintain a level playing field.
“We humbly request the government to not create any special category of cars based on size or weight for the purpose of providing concessions in CAFE,” the letter said.
Draft CAFE framework
The government recently released draft CAFE rules to regulate passenger vehicle fuel consumption and carbon emissions for the period from April 2027 to March 2032. The proposed framework tightens fleet-wide targets for automakers while offering relief for small petrol vehicles. Tata Motors said CAFE limits are set at the overall original equipment manufacturer (OEM) portfolio level to encourage companies to incorporate sustainable technologies across their line-ups.
Providing concessions to a specific sub-class of vehicles would reduce the need for OEMs to invest in technologies such as EVs, the company said, potentially undermining India’s broader EV adoption goals.
With policy stability and sustained focus, India could emerge as a leading manufacturer and user of zero-emission vehicles in the coming years, the company added.
