Government will not extend 2022 deadline for tighter fuel efficiency rules for carmakers

NEW DELHI: The government will not extend an April 2022 deadline to tighten fuel efficiency standards, in a setback for carmakers which are lobbying for more time, government and industry sources told Reuters.
The corporate average fuel efficiency (CAFE) requirements are designed to reduce carbon emissions from vehicles as India pushes auto manufacturers to invest in more fuel-efficient cars or cleaner technologies like electric, biofuels or compressed natural gas.
“The deadline to meet CAFE norms will not be extended,” a senior government official told Reuters, adding that some concessions could be considered if it sees serious intent by automakers to invest in clean technologies.
The push to delay the rules by two years is being led by the Society of Indian Automobile Manufacturers (SIAM), an industry group that represents major carmakers in India including top sellers Maruti Suzuki and Hyundai Motor.
Executives from Maruti and Mahindra & Mahindra were part of a SIAM delegation that discussed the matter with transport ministry officials on March 2.