Why Maruti Suzuki’s Rahul Bharti believes it will continue its leadership in CAFE-III

Maruti Suzuki India Ltd, one of the front-runners in absolute efficiency performance in CAFE phases I and II, will continue its leadership in CAFE-III also, according to a senior company executive.

“Maruti Suzuki is one of the front-runners in absolute efficiency performance in CAFE phases I and II and will continue its leadership in CAFE-III also,” Rahul Bharti, Senior Executive Officer, Corporate Affairs, at Maruti Suzuki, said in a statement after the government notified CAFE-III norms.

“The regulation recognises the contribution of multiple powertrain technologies and fuels, encouraging multi-faceted R&D and innovation,” Bharti said, adding that a credit or debit mechanism is an improvisation over the previous CAFE-II regulation.

“It is a comprehensive regulation that arrived after scientific data calculations and detailed stakeholder and inter-ministerial consultation with ambitious targets for energy efficiency improvement and CO2 reduction,” he added.

The CAFE-3 norms will come into effect from April 1, 2027, and remain applicable up to March 31, 2032. The revised target line has been flattened to provide a more balanced, weight-sensitive approach, with relatively softer targets for lighter vehicles and greater fuel efficiency requirements for heavier vehicles, the Ministry of Power said in a press release.

The rules provide substantial super credits for electrified vehicles. Battery electric and range-extended electric vehicles receive a 3x volume factor, while plug-in hybrids and strong hybrids running on flex-fuel ethanol get 2.5x, and strong hybrids get 1.6x. Flex-fuel vehicles receive a 1.1x factor.

Shailesh Chandra, MD & CEO, Tata Motors Passenger Vehicles, welcomed the government’s consultative approach in developing a framework that combines ambitious fuel efficiency targets with market-based compliance mechanisms. “Importantly, the continued recognition of zero-emission technologies reinforces the critical role of electrification in achieving India’s long-term decarbonisation objectives,” said Chandra.

“The clarity and predictability provided by the framework will enable the industry to plan investments, accelerate innovation and offer customers an increasingly compelling range of cleaner mobility solutions. At Tata Motors, we remain committed to leading this transition through sustained investments in electric mobility and other technologies that can meaningfully reduce emissions,” he added.

Commenting on the CAFE-3 norms, Shenu Agarwal, President of the Society of Indian Automobile Manufacturers (SIAM), welcomed the release of the CAFE III notification.

“CAFÉ III regulation lays down a structured roadmap with aggressive annual targets for the next 5 years for the auto industry along with a market-based compliance mechanism. This will not only ensure reduction of overall fuel consumption from the new Passenger Vehicle fleet but also provide an opportunity to the industry to work on various technology pathways, providing multiple choices to the consumers,” said Agarwal.

The CAFÉ III regulation framework provides clear predictability, which will enable the auto industry to plan investments and accelerate innovation, the SIAM President said.