Fuel-saving tech may help carmakers meet tougher CAFE norms

Automakers could soon have a new pathway to meet India's tightening fuel-efficiency standards without depending solely on electrification, Times of India reported, with the Centre proposing compliance credits for a range of fuel-saving technologies under the draft Corporate Average Fuel Economy (CAFE)-III regulations.

The draft norms, released by the Ministry of Power for stakeholder consultation, propose rewarding manufacturers for equipping vehicles with technologies such as automatic start-stop systems, tyre pressure monitoring systems (TPMS), regenerative braking, six-speed or higher transmissions, high-efficiency alternators, LED exterior lighting, advanced glazing, electric water pumps and solar-reflective paint. While several of these features are currently limited to select manufacturers or higher-end models, the proposal could accelerate their adoption across the broader market.

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Under the draft framework, every approved technology would earn a compliance benefit equivalent to 1 gram of CO₂ per kilometre, or 0.0422 litre per 100 km of fuel consumption under the Modified Indian Driving Cycle (MIDC). Automakers would be allowed to stack credits across multiple technologies, subject to an overall cap of 9 g CO₂/km, equivalent to 0.3795 litre per 100 km.

Until now, manufacturers have largely relied on improving engine efficiency or increasing the share of electric and hybrid vehicles in their line-up to comply with CAFE norms. The proposed changes would broaden the compliance toolkit by allowing technologies traditionally positioned as convenience, safety or premium features to also contribute towards meeting regulatory targets.

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The draft norms are also expected to encourage wider adoption of these technologies in mass-market vehicles, offering automakers a relatively cost-effective way to improve fleet-average fuel economy. In addition, the proposal strengthens the case for flex-fuel vehicles by providing compliance incentives linked to the use of renewable fuels.