Latest news with #Cafe3
Mint
2 days ago
- Automotive
- Mint
Auto lobby Siam to revisit emission norms for small cars amid Maruti's protests
Indian car manufacturers are driving towards a compromise on recommendations to the government on fuel efficiency standards after Maruti Suzuki, the country's largest carmaker, demanded concessions on emission norms for small cars amid slowing sales. During a meeting of the industry lobby group Society of Indian Automobile Manufacturers (Siam) held on Friday in the national capital, a compromise was reached that the December submission of the industry sent to the government on the third edition of the so-called Corporate Average Fuel Efficiency (Cafe 3) norms will be retained, but with an additional proposal on possible relaxations for small cars as well as some light commercial vehicles, two people aware of the matter said on the condition of anonymity Representatives from member automakers like Maruti Suzuki India Ltd, Tata Motors Ltd and Mahindra and Mahindra Ltd, among others, agreed to refer the matter to the chief executive council of Siam, which will now deliberate on the technical details. While Maruti presented its case for a need to relax norms for small cars, other automakers provided a united opposition to the market leader at the meeting. After hard negotiations, the lobby group agreed to work on a proposal in the form of an addendum to the December submission, which will be incorporated if it gets accepted by all companies. Siam takes all its decisions by consensus. 'Now, all the members will study and come back with their suggestions on the addendum. There has been no clear timeline set, but the process should conclude soon," the first of the two persons cited earlier said. Queries sent to Siam remained unanswered till press time. Maruti Suzuki, which sells nearly every second car in India thanks to its portfolio of small and compact vehicles, has sought specific relaxation for cars weighing under a tonne in the upcoming Cafe 3 emission norms. This comes after all automakers, including Maruti, had sent the government a unanimous proposal in December for a uniform relaxation of emission norms for all carmakers. 'Siam would like to re-iterate that the proposed norms of BEE (Bureau of Energy Efficiency) are too aggressive and risk the sustainability of the Indian Auto Industry," the industry wrote in its December submission. Cafe 3 rules, set to take effect from April 2027, aim to slash the average carbon dioxide (CO2) emissions of new passenger vehicles. The proposed target is a fleet-wide average of 91.7 grams of CO2 per kilometre for a typical vehicle weighing around 1,170 kg. The proposed norms allow a comparatively higher CO2 emission target for heavier vehicles than lighter vehicles, which is being disputed by Maruti. Cafe 3 norms place a cap on the average carbon dioxide emissions of a carmaker's entire fleet, which is currently set at 113 grams per kilometre. Chairman of Maruti Suzuki RC Bhargava has publicly said the norms are punishing smaller cars and favouring bigger ones. Siam data shows that domestic sales in the mini segment (cars up to 3.6-metres in length) fell from 460,772 units in FY19 to 133,397 in FY25, a 71% decline. Maruti's sales in the mini segment fell from 368,990 units in FY19 to 125,770 units in FY25, a fall of 66%. Shailesh Chandra, president of Siam, and managing director of Tata Motors' passenger vehicles business, acknowledged during an industry event on 15 July that the view on December consensus of some players had changed. 'Of late, we have seen certain manufacturers have formed a different view (on Cafe-3)," Chandra said, adding that the December 2024 consensus was reached after months of deliberations among automakers. However, he struck a cautious note when asked whether the December consensus will be completely reworked. 'We will have to follow the process and basis that we can say if there is a change or not," he said. As per the two persons cited earlier, the industry has pushed for the retention of the consensus, which was reached after at least 6 months of negotiations among all the members of the automakers. After much deliberations, an agreement was reached on working on an addendum on relaxations as the government had asked for Siam's recommendations on the issue in June. The government has also asked its own agencies to study the issue. Mint reported on 10 July that the Bureau of Energy Efficiency, which is tasked with finalizing Cafe 3 and 4 norms, is studying the viability of easing these emission norms for small cars, the second person quoted above said.
Mint
7 days ago
- Automotive
- Mint
MoRTH may bat for biofuel vehicles in CAFE 3 norms input to BEE
New Delhi: Amid an ongoing tussle over emission norms in the world's third-largest auto sector, the ministry of road transport and highways (MoRTH) is likely to ask the Bureau of Energy Efficiency (BEE) to provide incentives to vehicles running on biofuels such as ethanol as well as flex fuels, according to two people aware of the development. Corporate Average Fuel Efficiency or CAFE-3 norms are a cap on the average carbon dioxide emissions of a carmaker's entire fleet, and are currently set at 113 grams per kilometre. MoRTH is likely to push for 'biogenic derogation' to be included in the third iteration of the norms, to be enforced from April 2027 at a lower cap of 91.7 g/km. Biogenic derogation refers to concessions given to emissions from flex fuels, ethanol, methanol, and other alternative biofuels. 'We are examining attaching differential weights to vehicles based on different fuel combinations including electric, bio fuels and also on domestic content under the Cafe 3 norms proposed' said the first person quoted above. Under current CAFE 2 norms, carmakers get benefits for selling cleaner technologies such as hybrid vehicles, electric vehicles, and hydrogen fuel cell vehicles, but vehicles running on biofuels have not been incentivized yet. MoRTH's push for biofuels is likely to provide manufacturers another option to reduce carbon emissions on Indian roads, with the penetration of electric and hybrid vehicles remaining low in most parts of the country. 'The plan will help address the concerns of the auto industry that keeping emission down with just one alternative fuel option by way of electric vehicles would be difficult as penetration of these vehicles still remains low. Now companies could push for attaining Cafe 3 norms by widening the fuel option for the vehicles,' said the person mentioned above. 'The weight system is still under discussion and once it is finalized, the same would be recommended to the panel that is finalizing Cafe 3 norms,' said the second person mentioned above. Email queries sent to MoRTH and BEE remained unanswered till press time. India's electric vehicle penetration for four-wheelers has risen up to 2.6% at the end of FY25, with a little over 100,00 electric cars sold out of more than 3.8 million cars. Biofuels are fuels produced from organic matter, or biomass, such as plants and agricultural or industrial waste. They can be used as a replacement for or in addition to fossil fuels like diesel and gasoline, and can also be used to generate heat and electricity. Biofuels are considered a renewable energy source because the biomass used to produce them can be replenished. They also help in containing CO2 emissions when used as fuel in vehicles. CAFE norms follow a 'super credit' system, wherein concessions are given for using cleaner forms of technology on the road. For instance, under current norms, the sale of an electric car is counted as three sales, while that of a fossil fuel car is counted as a single sale. This form factor multiple helps carmakers keep total fleet emissions low, as the average fuel efficiency is the total fleet emissions per sale. A publicly available BEE invite for stakeholder consultations in June 2024 noted that the sale of one strong hybrid car would be counted as two, that of a plug-in hybrid car would be 2.5, and electric and hydrogen fuel cell cars would be counted as three. BEE proposed in those consultations to increase these incentives for electric and hydrogen cars, but reduce it for hybrids. Auto industry body Society of Indian Automobile Manufacturers (Siam) proposed in December 2024 the inclusion of a 'biogenic factor' in CAFE 3 norms. 'SIAM has proposed that CO2 produced from the combustion of biofuels should be classified as "green CO2" and therefore treated as zero, being biogenic CO2. This means that if a car runs on some blend of biofuel and petrol, the CO2 emissions from the biofuel component should be subtracted from the total tailpipe CO2 emissions for the purpose of CAFÉ calculation,' the letter dated 23 December 2024 said. Siam proposed to subtract 14.3% of a vehicle's tailpipe emissions if it was running on E20 flex fuel. E20 is a blend of ethanol (20%) and gasoline (80%). Indian carmakers are gearing up for the flex fuel shift. 'Hyundai Motor India Ltd. (HMIL) has actively participated in the auto industry's discussions on CAFÉ 3 norms, with its views submitted to the Government via SIAM in December 2024. We remain steadfast in our pursuit of smart, sustainable, and future-ready mobility solutions for India. We would not be able to comment further on the discussions on CAFÉ 3 till we receive any official communication from the Government,' said Puneet Anand, AVP and Vertical Head (Corporate Affairs, Corporate Communication & Social), HMIL. Anand added, 'Currently, HMIL offers E20-compliant vehicles in line with prevailing Government regulations. In India, HMIL continues to deliver mobility options tailored to diverse consumer needs, spanning Petrol, Diesel, CNG, and Electric vehicles. Looking ahead, Hyundai Motor Company globally leads in propulsion technologies, encompassing ICE, CNG, Flex-Fuel, Hybrid, Electric and Hydrogen solutions.' 'HMIL remains committed to supporting the Government of India's vision for energy security, reduction in oil imports, and rural economic upliftment through the promotion of flex fuel technologies. In alignment with this, at the Bharat Mobility Global Expo 2025, HMIL unveiled the first working prototype of the flex fuel-powered Hyundai CRETA, equipped with advanced powertrain technology capable of operating on fuel blends ranging from E0 to E100. This innovation underscores our dedication to sustainable mobility, as flex fuel vehicles powered by ethanol — a biogenic fuel — offer reduced net carbon emissions, enhanced performance, and potential economic benefits for consumers, especially with supportive Government policies on fuel availability and incentives.' Flex fuel vehicles are equipped with internal combustion engines that can operate on more than one fuel. They are primarily meant to run on ethanol and methanol or a blend of biofuels and on conventional fuels such as petrol or diesel. These engines can also run on various levels of ethanol blended in conventional fuels - typically from typically from E20 (20% ethanol) up to E100—without needing significant modifications in performance.
