Small cars won’t be hit by CAFE norms, exports growing: Nitin Gadkari
Industry stakeholders have been divided over the approach to small-car treatment under CAFE-III, with some arguing that differentiated targets could support affordability and others warning that special concessions could distort competition and undermine long-term clean mobility goals.
- Feb 9, 2026,
- Updated Feb 9, 2026 4:35 PM IST
Union road transport and highways minister Nitin Gadkari has downplayed concerns about the impact of upcoming corporate average fuel efficiency (CAFE) norms on India’s small-car segment, saying the automobile industry is experiencing robust demand and rising exports and that there is no fundamental problem for the sector.
Speaking to Business Today, Gadkari noted that exports of small cars from India have increased and that international demand for vehicles manufactured in the country remains strong. “Our export for small cars has increased, our automobile industry is seeing good demand internationally … we don’t see any problem,” he said.
Gadkari’s comments come against the backdrop of ongoing revisions to India’s CAFE-III fuel-efficiency norms, which are scheduled to take effect from April 1, 2027 and run through 2032. The latest draft removes a planned concession for small cars previously included for petrol vehicles weighing 909 kg or less following opposition from several major carmakers that argued the carve-out would disproportionately benefit a single manufacturer.
The revised norms impose stricter and more uniform standards across vehicle categories, requiring greater reductions in fleet-average emissions and encouraging broader adoption of electric and hybrid vehicles.
Industry stakeholders have been divided over the approach to small-car treatment under CAFE-III, with some arguing that differentiated targets could support affordability and others warning that special concessions could distort competition and undermine long-term clean mobility goals.
India’s automobile export performance has strengthened in recent years, with passenger vehicle exports reaching record levels and total auto shipments crossing significant revenue milestones, reflecting rising global acceptance of “Made in India” cars.
Union road transport and highways minister Nitin Gadkari has downplayed concerns about the impact of upcoming corporate average fuel efficiency (CAFE) norms on India’s small-car segment, saying the automobile industry is experiencing robust demand and rising exports and that there is no fundamental problem for the sector.
Speaking to Business Today, Gadkari noted that exports of small cars from India have increased and that international demand for vehicles manufactured in the country remains strong. “Our export for small cars has increased, our automobile industry is seeing good demand internationally … we don’t see any problem,” he said.
Gadkari’s comments come against the backdrop of ongoing revisions to India’s CAFE-III fuel-efficiency norms, which are scheduled to take effect from April 1, 2027 and run through 2032. The latest draft removes a planned concession for small cars previously included for petrol vehicles weighing 909 kg or less following opposition from several major carmakers that argued the carve-out would disproportionately benefit a single manufacturer.
The revised norms impose stricter and more uniform standards across vehicle categories, requiring greater reductions in fleet-average emissions and encouraging broader adoption of electric and hybrid vehicles.
Industry stakeholders have been divided over the approach to small-car treatment under CAFE-III, with some arguing that differentiated targets could support affordability and others warning that special concessions could distort competition and undermine long-term clean mobility goals.
India’s automobile export performance has strengthened in recent years, with passenger vehicle exports reaching record levels and total auto shipments crossing significant revenue milestones, reflecting rising global acceptance of “Made in India” cars.