IS CAFE 3 RIGGED? MARUTI SUZUKI CALLS OUT EMISSION RULE BIAS

In recent times, SUVs have gained popularity, which seems to be a good thing from the perspective of carmakers — or is it? The popularity has also killed a segment that was the backbone of India — small cars. However, it’s not just the shift in consumer trend, but has to do with the government as well, says auto major Maruti Suzuki.

Corporate Average Fuel Efficiency, or better known as CAFE norms, has given way to larger vehicles becoming more popular, while killing smaller, more fuel-efficient vehicles. As per a CNBC-TV18 report, 10 out of Maruti Suzuki’s 17 models on offer are small cars, which have been impacted by the fuel efficiency norms.

How are CAFE norms affecting small vehicles?

Before we look into the details, let’s examine what CAFE norms actually are. CAFE norms are restrictions set by the government to improve fuel efficiency and reduce pollution from vehicles. While this seems to be of no problem, Maruti Suzuki has pointed out that the current framework allows larger vehicles such as SUVs to pollute more while smaller vehicles have tighter restrictions.

Maruti Suzuki has also pointed out that other countries have similar rules, but also have a set of guidelines that protect smaller vehicles, and India should follow something similar, especially considering the lower per capita income.

Where does the CAFE norms argument stand now?

While this is Maruti Suzuki’s view of the norms, other carmakers who do not have small cars in their portfolio point out that it is purely a shift in consumer demand. With some industry experts predicting that the current emission norms could kill the small car segment soon, this could put more pressure on the sector.

The concern raised by Maruti Suzuki has reached high levels in the government, with top officials having discussions on the same, which includes Nitin Gadkari. The government is also considering whether there should be norms specifically designed for vehicles that weigh under 1,000kg.

India is a place where one-size does not fit all, and a good example is the recent Delhi fuel ban that received a major backlash for denying fuel for vehicles over a certain age, citing pollution. The issue created such a stir that the law is currently on hold, while also pointing fingers at certain incapabilities that led to a blanket ban.

2025-07-04T05:53:18Z