Healthy govt-industry consensus on CAFE 3 norms: Mercedes-Benz CEO Santosh Iyer

Luxury carmaker Mercedes-Benz has backed notification of the proposed CAFE 3 fuel efficiency norms, with Managing Director and CEO Santosh Iyer saying there is a healthy consensus between the government and the auto industry on the framework.

Speaking to Business Today, Iyer said SIAM has presented a unified industry view on CAFE 3 norms to the government and the focus should now be on execution and notification.

“Today SIAM has a unified view on CAFE 3 norms and the same has been represented to the government. We see healthy consensus between government and industry on CAFE 3 norms. What is needed now is execution and notification,” he said.

His comments come at a time when the industry is awaiting clarity on the next phase of corporate average fuel efficiency norms, which will have implications for automakers’ product strategies and investments.

On supply chains, Iyer said the company is avoiding troubled regions for logistics amid geopolitical disruptions, helping insulate operations from major shocks.

While component supplies have seen some delays, he said the company has adequate buffer stock to manage the situation. “Component supply is a bit delayed but we have buffer stock to manage it,” he said, while also noting that cost pressures remain high.

The comments indicate that while supply disruptions remain a concern, automakers are building safeguards into sourcing and inventory management to reduce risks.

Iyer also said the company expects single-digit growth despite global headwinds, while continuing to gain in a luxury market that has been under pressure. According to him, Mercedes grew 5% even when the broader luxury car segment was declining and currently holds a 60-70% share in the top-end luxury segment.

On electric mobility, he said India’s EV market has matured, with EV penetration in Mercedes’ top-end portfolio at 20%. He added that customer response is showing buyers are ready to adopt EVs when the right products arrive at the right time.