Keeping in view the increasing pollution and high consumption of fuel in the country, the Central Government announced the draft of new CAFE 3 norms for the automobile sector. The main objective of these regulations is to bring vehicles on the road that cover more fuel-efficient and less polluting vehicles. These rules are proposed to be implemented from 1 April 2027. At present, the government has sought suggestions from vehicle companies, experts and citizens on this draft.
CAFE is a measure of the average fuel efficiency of all vehicles manufactured by automobile companies. That is, the rule will not apply to one vehicle. The entire vehicle fleet of the company will be considered. So companies have to focus on making more modern and fuel efficient vehicles.
Set targets to reduce fuel consumption
The new regulations set tough targets to reduce fuel consumption in stages. A target has been set to reduce the average fuel consumption of vehicles over the next few years. In the meantime, dependence on petrol and diesel will reduce. At the same time, the emission of carbon dioxide will also decrease. CAFE-3
These rules will mainly apply to M-1 category passenger vehicles. Cars and SUVs with a maximum capacity of eight passengers besides the driver come under this category. The rules will apply to vehicles manufactured or imported for sale in India between 2027 and 2032.
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Less pollution due to fuel
Carbon neutral fuel has also been given importance in this draft for the first time. Vehicles that run on ethanol, biofuels and compressed biogas can benefit in particular. As such fuel reduces pollution, vehicle manufacturers will be encouraged to increase its use.
Apart from this, vehicles using new technologies will also benefit. The government plans to offer additional discounts and special credits to electric cars, plug-in hybrids, strong hybrids and flex fuel vehicles. Therefore, the production of eco-friendly vehicles is likely to get more momentum.
Get special credits
The government has also included a credit system in these regulations. If a company performs better than the targets set by the government, it will get special credits. These credits can be used in the future or with another company if required. Companies that do not meet the target will also have the option to purchase these credits.
These credits will be charged a fixed fee initially and will increase annually. However, if the credits are not used in time, they will be cancelled. Therefore, the vehicle companies have to follow the rules with proper planning.
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Penal action may be taken
Manufacturers who continue to ignore the rules may be penalized. However, it has been proposed to give some exemption to companies whose annual sales are less than 1000 vehicles.
The biggest benefit of this new policy is that clean and fuel efficient vehicles will be encouraged in the country. Consumers are also likely to get better performing vehicles at lower fuel costs. CAFE 3 regulations can play an important role in protecting the environment, saving fuel and promoting modern vehicle technology. Now after the suggestions coming out on this draft, what will be the final rules, along with the auto industry, consumers are also paying attention.
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